Frontmatter -- Preface -- Contents -- Introduction -- 1 A Theory of Choice under Uncertainty with State …

in the US. The key to understanding recent developments is uncertainty. The paper extends the standard New Keynesian … model to measures of uncertainty. It argues that the channel through which uncertainty influences inflation, wage cost and … unemployment is the markup firms charge to cover their cost of capital. The Federal Reserve Bank has been more successful because …

crises. Yet a more fundamental and pernicious source of uncertainty exists in today's world: the traditional "insurance … uncertainty, incorporating ideas from physic …

, and the underlying shifts in the burden of risk borne by individuals in the world of pharmaceuticals. Chapters cover risks …