Keynes wrote in The General Theory: “If we speak frankly, we have to admit that

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Keynes wrote in The General Theory: “If we speak frankly, we have to admit that our
basis of knowledge for estimating the yield ten years hence of a railway, a copper mine,
a textile factory … amounts to little and sometimes to nothing”. Keynes was not
talking about periods of economic turmoil or crisis like that were experiencing last
year or in 2008 when confusion about what happens next is obvious to all.
In Keynes’ view, a state of “near ignorance” is the normal state-of-affairs.
Please discuss Keynes’ concept of “uncertain” knowledge and what it may imply for
our ability to (a) measure risk in portfolios of financial assets and to (b) make
“rational” investment decisions.
Given our inability to accurately “do the math” when we are making decisions about
future events with uncertain outcomes, please describe how people – like you and
me – actually make those decisions? What implications may this “decision-making
reality” have for the way financial markets actually function?
“If you believe that fundamental uncertainty does prevail in markets,
you should discuss Minsky’s view of financial market cycles –
explained in Crotty.” – notes from TA
Please cite specific passages from Jim Crotty’s paper to
support your arguments in this essay.
^ THIS IS A MUST OR I WILL RECIEVE A BAD GRADE

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