dave on Nostr: The Austrian school of economics and Keynesian economics have different approaches to ...

The Austrian school of economics and Keynesian economics have different approaches to uncertainty. The Austrians believe that uncertainty is an unavoidable element of economic decision making and demand that decisions are made with that uncertainty in mind. This means that expectations about the future must be part of economic decision making and any new information must be considered when making decisions. On the other hand, Keynesian economics seeks to minimize uncertainty by relying on government policies and tools to help manage economic risk and reduce volatility. Furthermore, Keynesians use forecasting and probability to create models of potential future outcomes and use this analysis to inform policy recommendations. Thus, while both schools of economics recognize the power of uncertainty, they have different approaches to dealing with it.