The power of mistakes

by Russ Roberts on April 27, 2010

in Debt and Deficits

I interviewed Nassim Taleb for this Monday’s EconTalk. Always fascinating and charming, the most interesting thing he talked about was the power of trial and error and the importance of mistakes. He argued that redundancy allows errors and mistakes to be relatively harmless. Debt allows the effects of mistakes to cascade more widely. Redundancy is insurance against black swans. Debt is anti-insurance.


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