Imperfect Knowledge

    Imperfect Knowledge Economics develops macroeconomic models that are open to unforeseeable structural change and avoid the presumption that market participants are irrational. This program is also developing econometric methodology that is suitable for testing time-series implications of IKE models.

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    Volcker: Tackle the Unfinished Business of 2008

    The Volcker Alliance has launched a series of new papers with important proposals for reforming financial regulations to guard against future crises  Read more

    Real vs. Imagined Financial Markets The Regulatory Challenge

    We have grown accustomed to regulating financial markets based on imagined, not real markets. Real markets are shaped by and co-evolve with institutional arrangements within two fundamental constraints: Imperfect knowledge and the threat of illiquidity. Read more