Australia's Debelle on risk and uncertainty
The distinction between risk and uncertainty was not properly understood by investors prior to the crisis, Guy Debelle, an assistant governor of the Reserve Bank of Australia, cautioned on Tuesday.
"In discussing risk, I would like to highlight the key distinction between risk and uncertainty: risk is quantifiable, uncertainty is not".
The pre-crisis models were effectively predicting out-of-sample events because the future was unfolding broadly in line with the samples used to estimate the
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