Showing results by author "Mervyn King" in All Categories

Uncertainty pervades the big decisions we all make in our lives. How much should we pay into our pensions each month? Should we take regular exercise? Expand the business? Change our strategy? Enter a trade agreement? Take an expensive holiday? We do not know what the future will hold. But we must make decisions anyway. So we crave certainties which cannot exist and invent knowledge we cannot have.

'BRILLIANT, REVEALS DELIGHTFUL DETAILS ABOUT EMERY' The Times 'A BACKSTAGE PASS TO THE MAKING OF A MODERN FOOTBALL IDENTITY' Midlands Gazette Featuring exclusive interviews with Unai Emery, Monchi, Morgan Rogers and more, this is the behind-the-scenes account of Unai Emery's Aston Villa...

The past 20 years saw unprecedented growth and stability followed by the worst financial crisis the industrialised world has ever witnessed. In the space of little more than a year, what had been seen as the age of wisdom was viewed as the age of foolishness. Almost overnight, belief turned into incredulity. Most accounts of the recent crisis focus on the symptoms and not the underlying causes of what went wrong.

Radical uncertainty changes the way we should think about decision-making. For over half a century economics has assumed that people behave rationally by optimizing among well-defined choices. Behavioral economics questioned how far people are rational, pointing to the cognitive biases that seem to describe actual behavior.