Saturday, April 24, 2010

The causal mechanism to all crises

The Peso Problem: the 1% probability that a disaster can occur can answer many questions in the crisis literature. In the same way The 1% Doctrine can justify all actions and reactions to a problem.

If there is a 1% chance for a catastrophe then then the 1% doctrine is justified as a way to prevent that catastrophe. False dichotomy?

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