Volatility in an era of reduced uncertainty
Subtitle: lessons from Pax Britannica
By: William O. Brown, Richard C. K. Burdekin, Marc D. Weidenmier.
Contributors: Burdekin, Richard C. K. 1958-; Weidenmier, Marc D.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11319; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11319.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Economic history -- Political aspects.; Economic history -- 1600-1750.; Economic history -- 1750-1918.; Great Britain -- Foreign relations -- 19th century.
Description: "Although it has been well established that financial volatility is related to news and macroeconomic shocks, there has been less emphasis on the importance of underlying economic and political stability.  In this paper we study the behavior of consol returns since 1729 and identify a greater-than-50% decline in volatility from the end of the Napoleonic wars in 1815 until the First World War.  News events and macroeconomic variables cannot account for this extended period of reduced volatility.  Underlying political stability under Pax Britannica seems to be a more likely explanation, however"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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