Volatility
in sentence
690 examples of Volatility in a sentence
Others point to the debt burdens shouldered by poor countries, or to the
volatility
of emerging markets.
Conspiracy theories abound, particularly among the ranks of financial traders, for whom
volatility
is like wind to a sailor.
So, if a conspiracy of Asian central banks is not to blame for the
volatility
drought that is parching traders’ earnings, what is?Surely, today’s low
volatility
is partly cyclical.
Stock market
volatility
was also very low during the early 1990’s, before reaching new peaks later in the decade.
All of these changes have in turn contributed to lower economy-wide output and consumption
volatility
in both rich and developing countries.
Whatever the scenario that ends the calm, today’s age of low
volatility
will seem like a distant dream to most of us – and a forgotten nightmare for ambitious financial traders.
Although projections by the IMF and others have been persistently optimistic, each setback has been treated as a temporary deviation, associated with its own unique cause: the Greek bailout, the tragic tsunami in Japan, the spike in
volatility
following Standard & Poor’s downgrade of US debt, and so on.
And yet a fundamental lesson of the surge in financial
volatility
that began last summer is that state-controlled information is often bad information.
And even in those cases, stock markets barely reacted to the Fed tightening, while bond-market
volatility
proved short-lived.
Earlier, in 2009, the BRSA adopted another important measure that barred households from borrowing in foreign currency, thus sparing them the effects of exchange-rate
volatility.
With Turkey’s external deficit equivalent to 6% of GDP, the authorities have adopted a macro-prudential framework that combines policies to reduce exchange-rate
volatility
in the very short term with measures to increase domestic savings and promote the real sector’s international competitiveness in the long run.
What is most disturbing about the economy these days is its
volatility
– in other words, the inability of our institutions to protect us from extreme financial uncertainty.
Exports are weakening, domestic credit is slowing, and asset prices are showing worrying
volatility.
But long-term averages can mask significant
volatility
over time and variation across countries.
Last year, a “risk on” mood prevailed in financial markets, rooted in unnaturally low perceptions of future
volatility.
When the VIX
volatility
index hit all-time lows, it was not because fundamentals demanded it.
All we can say with confidence is that the abnormally low financial and economic
volatility
of last year is over.
I’d also, again humbly, take issue with the conclusion that “we can say with confidence…that the abnormally low financial and economic
volatility
of last year is over.”
2) My language on the end of last year’s low
volatility
was also shorthand.
First, I am willing to bet that
volatility
from here on will be higher than in 2017 (both realized and the VIX).
Second, we already know for sure that the period of continuous low
volatility
ended four weeks ago!
Financial
volatility
is like a superstorm on an already-warming planet.
“Market
volatility
is ill suited to environmental cycles,” as MIT’s Janelle Knox-Hayes puts it.
By taking advantage of new technologies, now widely available at affordable prices, countries can finally move toward long-term energy security and away from the inherent
volatility
of oil markets.
For some countries, this is currently the only viable option, but over the long run this dependence can mean higher energy costs and vulnerability to price
volatility
and supply shocks.
This is surprising, because, as developed economies with fully open capital accounts, they should have benefited from the free flow of capital and international risk sharing – and thus experienced little macroeconomic
volatility.
While interviewing me, Sedgwick raised an interesting point: Given that the
volatility
of many other asset prices has declined sharply in recent years, it might just be a matter of time before oil and other commodity prices do the same.
But I would argue that the decline in
volatility
in currency, bond, and equity markets largely reflects low inflation in many parts of the world, and the lack of significant monetary-policy adjustments by major central banks in recent years.
Meanwhile, market
volatility
has grown, and a correction is still underway.
As a result, a wave of investors shorted the renminbi, fueled exchange-rate
volatility
and drove a sharp increase in capital outflows.
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