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Quote by Mohamed El-Erian

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Mohamed El-Erian
Mohamed El-Erian

Mohamed El-Erian is a renowned economist and investment expert. Born on August 19, 1958, he has extensive experience in economic consulting. El-Erian has held senior positions in several international financial institutions and has a significant influence in global financial markets. more

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“People do not necessarily know what they are doing, because our ability to comprehend even matters that concern us directly is limited – or, in the jargon, we have ‘bounded rationality’. The world is very complex and our ability to deal with it is severely limited. Therefore, we need to, and usually do, deliberately restrict our freedom of choice in order to reduce the complexity of problems we have to face. Often, government regulation works, especially in complex areas like the modern financial market, not because the government has superior knowledge but because it restricts choices and thus the complexity of the problems at hand, thereby reducing the possibility that things may go wrong.”