more than ever, we need them to work
- Written by Stephen Kirchner, Program Director, Trade and Investment, United States Studies Centre, University of Sydney
The extreme volatility and losses seen in stock markets in recent weeks has seen calls for financial markets to be closed[1] and short selling[2] restricted.
But shutting them down would be a mistake.
Amid the volatility, financial market prices convey much needed information.
S&P/ASX 200 share index over the past year
References
- ^ financial markets to be closed (www.barrons.com)
- ^ short selling (www.investopedia.com)
- ^ Source: Yahoo Finance (au.finance.yahoo.com)
- ^ Beryl Sprinkel (www.chicagotribune.com)
- ^ third-hand accounts (streetwiseprofessor.com)
- ^ More than a rate cut: behind the Reserve Bank's three point plan (theconversation.com)
- ^ research (www.ussc.edu.au)
- ^ Source: Reserve Bank of Australia (www.rba.gov.au)
- ^ New York (qz.com)
- ^ Chicago (www.cnbc.com)
- ^ This coronavirus share market crash is unlike those that have gone before it (theconversation.com)
- ^ Coronavirus market chaos: if central bankers fail to shore up confidence, then what? (theconversation.com)
- ^ including in Australia (www.institutional-economics.com)
Authors: Stephen Kirchner, Program Director, Trade and Investment, United States Studies Centre, University of Sydney