Didier Darcet
27 July 2022

The Leaders’ Tail Risk? Models. Part I

Western leaders have spent trillions of dollars in resources to address the Covid crisis.Primary reason? A model.

Two years later, facing uncharted inflation levels for fifty years and energy shortage, Western leaders, especially European leaders, procrastinate. Primary reason? A model.

What if the models were wrong? The first one predicting apocalypse, and the second business as usual. Here, we discuss the second one, i.e., the GDP consequences of primary energy shortage.