lower the volatility of output growth. Technological complexity evolves endogenously in response to profit incentives. The … decline in volatility thus arises as a by-product of firms' incentives to increase profits and is hence a likely outcome of … that for reasonable parameter values, the model can generate a decline in volatility with the level of development …

This paper relates the volatility of the (trade-weighted) effective real exchange rate to the degree of trade openness … share of an economy and the volatility of its real exchange rate. Empirical evidence on a cross-section of 54 countries … confirms this relationship: Difference in trade openness explain a large part of the cross-country variation in the volatility …

Poor countries are more volatile than rich countries, and we know this volatility impedes their growth. We also know … that commodity price volatility is a key source of those shocks. This paper explores commodity and manufactures prices over … the past three centuries to answer three questions: Has commodity price volatility increased over time? The answer is no …

component. We show that both the time series and the term structure of conditional volatility in general is downward sloping and … reputation. Another testable implication is that in price series without a policy reversal, implied volatility from option prices … will exceed actual volatility. Over time, and in the absence of a reversal, this wedge progressively disappears. This may …

(real or nominal, bilateral or effective) exchange rate volatility? If so, has this been at the expense of increased … interest rate volatility? How important have capital controls been for the operation of the EMS? Has the Exchange Rate … Mechanism reduced the volatility of unanticipated exchange rate changes? Has the EMS been effective in making ERM currencies …

investment funds traces out a mean-variance tradeoff for the growth rate of the economy. In particular, the volatility of these … and volatility. …

uncertain and subject to learning. We discuss phenomena related to the volatility and predictability of asset returns, stock …

resulting volatility can induce risk-averse transactors who face transaction costs to desert these markets altogether. Thus … thinness and the consequent price volatility may become joint self-perpetuating features of an equity market, whatever the … volatility of asset fundamentals. If, however, appropriate incentive schemes are adopted to encourage entry of additional …

-root process. Hyperbolic and quasi-hyperbolic discount factors can significantly increase the volatility of aggregate wealth and …

primarily from convergence in the volatility of state output growth, rather than in its average. The realized industry shares of …