Sheila Dow discusses the concept of radical uncertainty and the failure of neoclassical economics to integrate it into its analysis. As to the implications for financial regulation that arise from the presence of radical uncertainty she argues for institutional overhaul, where the banks see themselves as a licensed partner of the central bank and where rules, values, and conventions would be subject to a cultural shift. Also, Sheila Dow advocates for a renewed focus on retail banking.

Ever wondered how a rap battle between John Maynard Keynes and F.A. Hayek would sound like?

Gerald Friedman UMassEconomics University of Massachusetts at Amherst