What does the Bank of Japan increasing its interest rate from .25% to .5% mean and why is it causing panic in the markets?

Question

I’m no good at economics lol

In: 4812

Answer 1

> I’m no good at economics lol

Truth is, nobody actually is; in fact, it might actually be impossible to actually be good at it. You are likely almost as good at it as the people who run reserve banks, but just because there is very little actual skill involved and the economy is way too complicated to think anybody understands it.

There was a great explanation of this recently by Veritassium’s channel on youtube about becoming an expert. The common thought it it takes 10,000 hours of experience…. but that is experience in a consistent environment with consistent feedback. Markets don’t do that and tend to act randomly. Random events are never consistent feedback…. so its literally an area that is impossible for expertise to exist.