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Knowledge is more than additive. What we learn when we bring two bodies of knowledge together may be much more than the sum of each alone.
Ronald Coase, who has died at the age of 102, played a key part in developing the intellectual arguments behind the market revolution that swept round the world in the 1980s.
The further one moves from mechanisms that are well understood and events that are frequently repeated, the less appropriate is the use of probabilistic language.
In the modern financial economy, the main effect of QE is to boost asset prices, as market gyrations of recent weeks have clearly illustrated. But is the pursuit of higher asset prices an effective or desirable means of promoting economic growth?