What is a Black Swan Event? | Black Swan Theory | Indian Economy | Free PDF

What is Black swan event?

Black swan event in Economy 

• Black swan event in the finance world refers to an extremely negative and rare event which creates a negativeeffect on the society or world
• The term is derived from a situation where the Europeans discovered Black Swans . Before that theybelieved that swans are only white in color

There are three main characteristics of Black Swan event

1. They are extremely rare to occur
2. They have severe impact after occur
3. they seem to be quite probable once their reason is found out

Example 

The term was given by eminent economist

Nassim Nicholas Taleb

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