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9/4/11

On Wall St., a Keynesian Beauty Contest - by Robert J.Schiller

The extraordinary surge of stock market volatility during the last month can’t be explained by conventional means. Yes, hundreds of scholarly papers have tried to predict the size of such swings, and whole markets — like those for futures and options — thrive on these movements. Yet we still don’t have a clear, mathematical understanding of volatility’s source.

For more: On Wall St., a Keynesian Beauty Contest - NYTimes.com

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