The dissonance of the short and long term

a column by Jon Danielsson and Robert Macrae for VOX: CEPR’s Policy Portal

The type of risk we most care about is long-term, what happens over years or decades, but we tend to manage that risk over short periods.

This column argues that the dissonance of risk is that we measure and manage what we don't care about and ignore what we do.

Continue reading

---