A widely held view is that openness to international trade leads to higher GDP volatility, as trade increases … important, openness to international trade can lower GDP volatility by reducing exposure to domestic shocks and allowing … importance of the two mechanisms (sectoral specialization and cross-country diversification) and provide a new answer to the …

with higher volatility have lower growth. The addition of standard control variables strengthens the negative relationship …. We also find that government spending-induced volatility is negatively associated with growth even after controlling for …This paper presents empirical evidence against the standard dichotomy in macroeconomics that separates growth from the …

countries with relatively low levels of financial development, exchange rate volatility generally reduces growth, whereas for … rate volatility, and outliers. We also offer a simple monetary growth model in which real exchange rate uncertainty …This paper offers empirical evidence that real exchange rate volatility can have a significant impact on long-term rate …

-run growth and another studying its impact on volatility and crisis—has given way to a more nuanced approach that analyzes the …This paper reviews the evolving literature that links financial development, financial crises, and economic growth in …-off between higher economic growth and higher crisis risk; and its main conclusion is that, for at least middle-income countries …

domestic shares under full diversification. When stock-market data are directly used, the predicted coefficient of home bias …

Many seemingly discordant results are reconciled if firm-specific return volatility is characterized as the intensity …, who can be last year's winners. This elevation in firm-specific fundamentals volatility elevates firm-specific return … volatility in a sufficiently informationally efficient stock market. These linkages are interconnected feedback loops, rather …

prices responded strongly to boat arrivals, but there was considerable volatility in the absence of news. The evidence …

This paper analyzes non-fundamental volatility and efficiency in a class of large games (including e.g. linear … guarantee zero non-fundamental volatility in equilibrium, and provide another set of necessary and sufficient conditions to … rational inattention literature, both precludes non-fundamental volatility and imposes efficiency, whereas the Fisher …

institutions predicts higher volatility and greater noise in stock prices as well as greater fragility in times of crisis. When … display correlated behavior, which reduces diversification of idiosyncratic shocks. Thus, large institutions trade larger …