Why Markets Need Not Fear Uncertainty
Here’s a chicken-or-egg finance question: Do volatility shocks in equities markets cause business-cycle downturns, or do business-cycle downturns manifest as highly volatile stock prices? Research suggests that volatility is evidence of contractionary economic conditions already in place.
Content: Article | Authors: David Berger, Ian Dew-Becker, Michael Maiello, Stefano Giglio | Source: University of Chicago | Subject: Economics