Uncertainty
In general, doubt with regard to the occurrence of expected circumstances; incertitude: doubt as a state of being unsure of something; lack of clarity. – In economics, in particular, a danger in which – the distribution of the consequences of possible actions is unknown and – therefore cannot ultimately be satisfactorily calculated mathematically – and in contrast to risk, where the extent of the damage caused by an event can usually be calculated precisely, the probability of occurrence is, of course, always also dependent on expectations. – Decisions in financial markets are in almost every case subject to a more or less high degree of uncertainty. – In their decision-making, central banks distinguish between data uncertainty and model uncertainty. – In particular, also said of matte expectations regarding the macroeconomic situation. High uncertainty in this sense has a restraining effect on household spending behavior and business investment. – See instructions, monetary, expectations theory, new, formulas, financial, money market volatility, idle money, imponderables, information, asymmetric, natural event, normal distribution, residual risk, thrift rule, structural uncertainty, insurance, insurance uncertainties, distribution, stable. Volatility. – See Deutsche Bundesbank Monthly Bulletin of September 2005, p. 62 (volatility, risk and uncertainty), ECB Monthly Bulletin of April 2007, pp. 36 ff. (measuring uncertainty in the stock market; overview), ECB Monthly Bulletin of January 2010, pp. 49 ff. (measuring perceived macroeconomic uncertainty; reviews), ECB Monthly Bulletin of October 2013, pp. 49 ff. (attempting to measure uncertainty in the sense of in relation to the macroeconomic environment in the euro area; reviews; references).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/