The Elusive Truth - Re-evaluating Economic Models in the Age of Uncertainty

Pasquale De Marco

Summary

In a world of constant flux and uncertainty, traditional economic models often fail to capture the complexities of real-world economic phenomena. This book provides a comprehensive examination of the role of uncertainty in economics, offering a critical assessment of conventional models and a roadmap for developing more robust and realistic approaches.

Drawing on the insights of John Maynard Keynes, this book explores the various ways in which uncertainty affects economic decision-making, policymaking, and economic outcomes. It delves into the challenges and opportunities presented by uncertainty in different economic contexts, from financial markets to labor markets to international trade.

The book begins by examining the limitations of traditional economic models, which often assume perfect information and rational decision-making. It then explores the Keynesian revolution in economic thought, which emphasized the importance of uncertainty and the role of government in mitigating its effects.

The book goes on to discuss the post-Keynesian era, which saw the rise of monetarism and new classical economics, as well as the rational expectations revolution. It also examines the global financial crisis of 2008 as a stark reminder of the limitations of conventional economic models.

The book concludes by looking to the future of uncertainty in economics. It considers the impact of technological change, climate change, and other long-term trends on economic stability and policymaking. It also discusses the need for a new economic paradigm that can better navigate the complexities of the modern economy.

This book is essential reading for economists, policymakers, and anyone interested in understanding the complex relationship between uncertainty and economic outcomes. It provides a comprehensive overview of the latest research on uncertainty in economics and offers a roadmap for developing more robust and realistic economic models.

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Available since: 06/02/2025.

Print length: 171 pages.

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