In economics, a rare disaster is a collapse that is infrequent and large in magnitude, having a negative effect on an economy. Rare disasters are important because they provide an explanation of the equity premium puzzle, the behavior of interest rates, and other economic phenomena.
In economics, a rare disaster is a collapse that is infrequent and large in magnitude, having a negative effect on an economy. Rare disasters are important because they provide an explanation of the equity premium puzzle, the behavior of interest rates, and other economic phenomena.
Source: Wikipedia "Rare disaster" · CC BY-SA 4.0
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