…not linear. The risk is mostly inflation risk (not default risk — that is best hedged with canned food, bottled water and guns). But wait aside from the illusory wealth…

…to manage risk. But look what is happening here. This is a tax imposed only when a US-based company transfers an insurance risk that it has assumed TO AN AFFILIATE…

…The ratio of demand for the safest tranche (which bears approximately only inflation risk) and the riskiest tranche is the same for extremely risk averse and less risk averse agents….

…at all. In a simple model with no transactions costs and no non-traded assets, all agents buy all risky assets. The more risk averse invest more in the safe asset…

…spend now and save later. 2. Risk: people who are unusually averse to risk in general can make win-win trades by trading off some of the risks that they are…

…speculators really absorbed risk, there would be no worry about the risks falling back to the taxpayers. But in the case of the financial crisis, it was the taxpayers, ultimately,…

…shifts risk from risk-averse individuals to the risk-neutral government, creates real value. But that argument was couched in somewhat abstract terms: risk premiums, certainty equivalents, binomial distributions, and laws of…

…took the debate to twitter. Krugman wrote a brief (this is twitter) argument defending Keynesian stimulus. Paul Krugman ‏@paulkrugman 13h The Policy Irrelevance of the Risk Premium: 1/ Brad DeLong…

…correspondence to the Editor of the New England Journal of Medicine. Illuminating, if one might call it such? “A 1980 Letter on the Risk of Opioid Addiction“ The NEJM published…

…of risk changes drastically when considered from a public health lens, especially with considerations unique to children.  “From 1999 to 2019, influenza was the eighth leading cause of death in children. Yet…