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The events led to a situation in which the power was distributed between the people and the governmental structures in the meaning that the federal decisions were continually subjected to pressures. The government gradually lost its powers and the direct result was that of increasing levels of uncertainty within the societies. Uncertainty as such came to be a constant of the general life as well as the specific life of the economical and political fields. And this new element -- or at least newly identified element -- could not be neglected. In Keynes's words, uncertainty is recognized as the "inescapable companion to the human condition" (Keynes, 2006).
Aside the realization of uncertainty, Keynes's interest in the element has also opened the doors to the identification of the means in which to best address uncertainty in such a manner that it is managed and it generates a limited negative impact upon the market. In order to better manage uncertainty and to better respond to its challenges, two sets of actions have been developed -- (1) the creation of institutions which can reverse decisions so that the element of surprise can be dealt with in an efficient manner and (2) the creation of assets with a certain value so that they do not suffer devaluations and they are continually reliable. "What Keynes has made us recognize is that we deal with uncertainty by creating institutions which make real economic decisions reversible and then we make them reversible into cash" (Wattel, 1985).
Keynes's study of uncertainty emerged from the realization of the complexities within the economic system, as well as the realization that the models of the time were limited and not able to adequately capture the essence and the estimate the future evolution. In other words, the study of uncertainty was generated by Keynes's need of stabilizing the economy of the days. Uncertainty was integrated in the same group with ignorance and risk, all three of which were considered the evils of economics. During the same period, John Rogers Commons also became interested in the economic aspects of uncertainty. Yet, this second economist engaged in a more tedious work, which saw him through thorough analyses in specific fields...
Keynes on the other hand was "facile and quick" (Atkinson and Oleson Jr., 1998).
Ultimately, the specialized opinions regarding the role of uncertainty in Keynes's work vary. On the one hand, stand those who argue that the economist has issued globe wide theorems, while on the other hand stand those who argue that Keynes' theories -- including his views of uncertainty -- are only applicable in the limited context of the United Kingdom. "We also contend that Keynes's General Theory was constructed from foundations in British institutional conditions, suggesting that his analysis can arguably be better understood within context-specific, institutionalist approaches to economics -- […] which contend that the United Kingdom has specific problems - rather than the more conventional approaches which seek abstract, universal theorems in Keynes's work" (Cameron and Ndhlovu, 1999).
References:
Atkinson, G., Oleson, JR., T., 1999, Commons and Keynes: their assault on laissez faire, Journal of Economic Issues, Vol. 32, No. 4
Cameron, J., Ndholvu, T.P., 1999, Keynes and the distribution of uncertainty: lessons from the Lancashire cotton spinning industry and the great general theory, Review of Social Economy, Vol. 57, No. 1
Harcourt, G.C., Riach, P.A., Keynes, J.M., 1997, A "second edition" of The general theory, Vol. 2, Routeldge, ISBN 0415149436
Holt, R.P.F., Pressman, S., 2001, A new guide to post Keynesian economics, Routledge, ISBN 0415229820
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