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NOT for the first time, the recent behaviour of financial markets has been at odds with economic fundamentals.
Low volatility and the carry trade sow the seeds of their own destruction.* "The recent behaviour of financial market volatility".
Thus, financialising adaptation would put adaptation policies – parts of them at least – at the mercy of the erratic behaviour of financial markets.
Mr Adrian, Emanuel Moench, and Mr Shin have shown that the borrowing behaviour of financial intermediaries can explain changes in risky asset prices.
Where, he asks, would the excess demand for global assets go?So far, the behaviour of financial markets seems to vindicate his point.
The first relates to timing: as outlined above, it is the behaviour of financial institutions when risks appear low that creates the threat.
Similar(48)
The financial behaviour of non-financial corporations is a major problem.
Formed less than a year ago to confront threats to financial stability, including bubbles, its range of "macroprudential" tools aim to influence the behaviour of the financial system.
She said: "The behaviour of the financial sector has not changed fundamentally in a number of dimensions since the crisis.
I represent a constituency where both the behaviour of the financial institutions and the rapidity of change brings instability and growing unemployment on a mega scale.
Mr Müntefering attacked the behaviour of certain financial firms whose profit-maximising strategies were a long-term threat to "our democracy".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com