What’s driving stock market volatility?

Stock market volatility—big swings in the prices of stocks—had actually been relatively low in the period of recovery from the financial crisis through 2017. However, that trend has been changing of late, with several incidences of volatility marked by ‘short, sharp hurricanes,’ rather than the ‘longer storms’ of the past. I discuss some of the changes in technology and financial regulation that contribute to recent volatility alongside Michael Klein, Executive Editor, EconoFact in this video.

(If you aren’t familiar with EconoFact, you need to be! EconoFact’s mission is to provide even-handed analyses of timely economic policy issues drawing on data, historical experience and well-regarded economic frameworks. With an incredible network of academics writing fact-based memos, the goal is to help combat fake news. In full disclosure I’m on the advisory board, but they are doing really interesting stuff.)

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