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Tuesday, October 11, 2005



That sounds intuitively stupid. If a country has no financial institutions, then it knows no volatility.
I wonder what good are such studies in a pre crash era. As long as debt is being piled up, the cycle is not over and volatility studies are biased towards growth. What good would have been volatility studies pre 1929 ?
Of course here and there crisis. But overall a growth. and possibly volatility having a higher impact when financial instititutions are not good.
However in 1929 the countries with the most developped financial institutions are hit the hardest.

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