(e) Price volatility

One apparent consequence is extreme price volatility.

Where Did Market Volatility Go?

Global economic instability correlates strongly with energy price volatility.

It supports the purchase of equities by central banks to reduce asset price volatility, restore the value of wealth, and prevent a future market crash.

Security problems and disruptions in production also increased price volatility.

Such volatility does not fit a fundamentals driven market.

That prospect has already sparked renewed financial market volatility.

Indeed, one of the big puzzles of the US stock market recently has been low price volatility since around 2004, amid the most volatile earnings growth ever seen.

Weather related events are a major cause of price volatility on agricultural markets.

The more energy efficient one is, the lower one s vulnerability to price volatility.

While speculators can affect prices in the short run and increase price volatility, market fundamentals and government actions explain the spectacular rise in oil prices between 2003 and mid 2008.

While this is keeping price volatility in check, it is also hindering employment growth.

To be sure, political and market volatility in a broad range of emerging market economies will continue.

In a turbulent world of market volatility, however, they risk being overwhelmed.

Economists generally consider commodity futures to be the solution to higher price volatility, not its cause.

Since these responses are overdue, they are severe and lead to energy price spikes and volatility.

One would hope that his removal would reduce market volatility and stabilize oil prices.

Immense market volatility serves only to reinforce people s sense that something is really wrong.

While not a cause of price volatility, speculation on derivatives of essential food commodities significantly worsens it.

A volatility feedback loop begins the more volatility, the more people feel they must pay attention to the market, and hence the more erratic their trades.

But their presence has also raised concerns that speculation in commodity futures could result in higher price volatility.

Given these findings, trading in futures markets seems to have amplified price volatility in the short term only.

If managed in ways that are transparent and participatory, and if countries combine their efforts regionally, food reserves can be an effective way to boost sellers market power and counteract speculation by traders, thereby limiting price volatility.

Saddam's regime caused most of the volatility in the oil market in the last 30 years.

So there was unwelcome and unneeded market volatility because Trichet couldn t get the message out straight.

The euro was created partly in order to bolster internal market efficiency and prevent currency volatility.

But chronic hunger remains pervasive, particularly in developing countries, which are affected most by crop shortages and food price volatility.

The growth slowdown is a much greater concern than the recent asset price volatility, even if the latter grabs more headlines.

Price discrimination uses market characteristics (such as price elasticity) to adjust prices, whereas yield management uses product characteristics.

The eurozone s sovereign risk problems could worsen, leading to another round of asset price corrections, global risk aversion, volatility, and financial contagion.

Recent global economic trends called for major policy initiatives, for example for export diversification, investment in infrastructure and control of price volatility.

Fortunately, there is little reason to believe such dire predictions, or that the market gyrations that have been driving recent headlines represent anything more than short term volatility. After all, equity price movements are a poor predictor of the real economy s performance.

One would think that market prices should be volatile as investors try to absorb what this earnings volatility means.

Oil is not a reliable deterrent to democracy in the long term, owing to price volatility and the development of alternative energy sources.

UNCTAD is also actively working on issues related to the impact of oil price volatility on African oil importing and oil exporting countries.

When large banks are unable to play this role, and are forced to retrench, the likelihood of market volatility increases.

Instead, it relies on value at risk (VaR) measures that link risk to standard notions of short term market volatility.

Such measures will contribute to shaping a more stable market environment and ensure that commodity futures reduce risks and volatility.

Stock market volatility was also very low during the early 1990 s, before reaching new peaks later in the decade.

For example, the minimum price for coffee is 1.26 per pound, no matter how low the market price may fall.

The market price of anything is always equal to the marginal cost.

Recent market volatility has been partly a response to the apparent rise in the downside risk of policy paralysis or denial.

A lack of investment in agriculture that feeds local communities makes these countries vulnerable to international price shocks, as well as to exchange rate volatility.

But emerging market policymakers criticisms do not reflect an inconsistent stance in both cases, the crux of their complaint has been volatility.