In a speech titled, "(Under-)pricing of risks in the financial sector" by Jean-Claude Trichet
"The periods of crisis bring to light the major shortcomings of the
underlying mathematical [risk] models. In those periods the behaviour of
amrkets and prices does not appear to follow any probabilistic model ex
ante but rather reflects a more fundamental Knightian uncertainty in which
even probabilities are unknown."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment