In finance risk is predictable (volatility is the average variance of the prices), but uncertainty is unforeseen. The central banks, since they have chosen the path of extraordinary monetary easing (low rates, even negative ones and the placing of extreme liquidity in the system) they carefully monitor the volatility of prices: financial wealth cannot contract too much, otherwise demand stops and the real economy [...]
SEPTEMBER COMMENT 2019 - DON’T FIGHT THE FED AND DRAGHI