There is slow growth, but it is positive slow growth. At the same time, ratios of debt-to-incomes go down. That's a beautiful deleveraging.
Ray DalioRead
That economic decisions are made without certain knowledge of the consequences is pretty self-evident. But, although many economists were aware of this elementary fact, there was no systematic analysis of economic uncertainty until about 1950.
Interpretation
What this quote means
Economic decisions often occur without complete information about their outcomes.
Kenneth Arrow highlights the inherent uncertainty in economic decision-making. Despite the obvious nature of this uncertainty, it was not until the mid-20th century that economists began to systematically analyze its effects, suggesting a gap in the understanding of economic theory during earlier periods.
Themes
EconomicDecisionsUncertaintyAnalysisConsequences
In practice
Example use cases
During a keynote speech on financial literacy, one might quote Arrow to emphasize the importance of understanding risk in investments.
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