Nobel laureate in economics: Nations with stable rules will be the winners #CGTN

Nobel laureate Thomas Sargent nailed it when he said that U.S. policies are increasing uncertainty. Pointing to the difference between risk and uncertainty, and its impact on investment, he said, “Risk means, ‘I know the probability distribution.’ I know it is uncertain, but there’s some normal distribution because I have seen the data.” Meanwhile, “uncertainty means I don’t know the probability distribution.’ There’s no stable rules. They change, and that creates havoc with models of investments and allocations of capital.” His key insight: Nations with stable rules will be the winners. Click on the video for more food for thought.