However, a paper* to be presented at next week's conference will argue that, by adjusting interest rates in response to asset-price misalignments even when inflation remains on track central banks can reduce the long-term volatility of both inflation and output.
"By reforming the market, we can ensure security of supply for the long term, reduce the volatility of energy bills by reducing our reliance on imported gas and oil, and meet our climate change goals by largely decarbonizing the power sector during the 2030s," Mr. Davey said in a statement.
Any complaints about the cost of subsidising renewables should be set against the likely pain that both industry and consumers could face in the long term - with continued volatility in oil and gas prices and an eventual peak in oil production.
The institutional investment firm Research Affiliates has done its own data analysis and found that over the long term, the low-volatility approach produced about a two-percentage-point advantage with 25 percent less volatility.
During that period, a slight decrease in the long term growth rate and volatility in the trend were observed, which is taking into consideration that the 1998 crisis brought about a banking crisis as well.
The only real bright spot is the US, and even the US is good but not greatOne should be pretty cautious about overinterpreting the Baltic Dry's movements; its sheer volatility over the long term suggests it can hardly be an exact forecaster of the economy.
My Take: John puts his money in the best stocks for the long term but takes advantage of market volatility when he can add to his position at a big discount to his estimate of intrinsic value.
Cash CTFs can play an important role as a temporary safe haven during periods of market volatility but over the long term equities should outperform them".
"Invest for the long term, spread your risk, stay calm in the face of market volatility, and diversify your portfolio".
In the long term, increasing oil supply from North America would help improve energy security and moderate volatility in gasoline prices, Hoeven said.
Bonds can provide an income stream and can smooth portfolio volatility, but their performance has historically lagged behind stocks over the long term.
