Learning from History

In the years before the 2008 financial collapse, stock market volatility was unusually subdued. In this insightful, well-presented report, economists Jon Danielsson, Marcela Valenzuela and Ilknur Zer offer financial professionals and policy makers new research on market volatility and banking crises that is based on more than 200 years of data drawn from countries around the world. The authors’ findings support the counterintuitive idea that long-term stability foreshadows economic shockwaves. getAbstract recommends this authoritative report to investors and policy experts interested in understanding how volatility patterns foster systemic risk.