Knightian uncertainty

English

Etymology

Named after University of Chicago economist Frank Knight (1885–1972).

Noun

Knightian uncertainty (countable and uncountable, plural Knightian uncertainties)

  1. A lack of any quantifiable knowledge about some possible occurrence, as opposed to the presence of quantifiable risk.
    • 2025 March 21, John C. Williams, “Certain Uncertainty (speech)”, in New York Fed‎[1] (Remarks at the Macroeconometric Caribbean Conference, Nassau, Bahamas):
      In addition, it is hard currently to assign probabilities to these scenarios. This is something economists refer to as Knightian uncertainty.
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