Diane Coyle — Unknown knowns about financial markets

One of the interesting essay’s in Rebecca Solnit’s Encyclopedia of Trouble and Spaciousness, which I read recently, riffs on Donald Rumsfeld’s famous known knowns, known unknowns, and unknown unknowns, adding a fourth category (which she attributes to Slavoj Zizek) of unknown knowns. In her essay, the context is the scale of the US economy and policy devoted to military resources. In the financial markets, it is the existence of bubbles or stresses that exist in the data – in the world – but are not seen.

Of course, MMT'ers know quite a bit about unknown knowns in the financial sector, government, and academic economics and have offered historical proof of it.

The Enlightened Economist
Unknown knowns about financial marketsDiane Coyle | freelance economist and a former advisor to the UK Treasury. She is a member of the UK Competition Commission and is acting Chairman of the BBC Trust, the governing body of the British Broadcasting Corporation