Will There Be Policy Mistakes?

We don't really know the lag structure between what we do in policy and what will be the reaction. And I think that it's the hubris of policymakers to think that they know that. The other thing that I've spent time on is that what is the kind of learning environment that we have in markets? So when you think about it is that a market is a learning environment, there's a feedback effect. We do something we expect a certain kind of reaction. But Markets are a very wicked environment, learning environment, not a kind environment. Because of that, policymakers will make mistakes.

Transcript

Play full episode

Transcript

Episode notes

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app