# Market volatility

`kaal:entity:market-volatility`

**Status.** derived

This node is assembled mechanically from the 6 claims that carry the concept tag `market-volatility`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

6 claims across 6 works, 2013 to 2021.

**2013**

- [2273857-044](https://wulfkaal.github.io/claims/2273857-044) [mechanism/argued] -- The increasing volatility of financial markets combined with financial innovation parallels the pace of technological development in telecommunications, the industry where dynamic regulation has predominantly been applied.
  > The increasing volatility of financial markets in combination with financial innovation shows some parallels to the pace of technological developments in telecommunications markets.
  Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857
- [kaal-2013-acomparativeperspectiveo-026](https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-026) [failure/argued] *(failure mode)* -- Governance adjustments made through stable rules in reaction to a systemic shock can result in suboptimal governance outcomes, market volatility, and economic loss.
  > Governance adjustments via stable rules in reaction to a systemic shock can result in suboptimal governance outcomes, market volatility, and economic loss.
  Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)

**2014**

- [2470008-006](https://wulfkaal.github.io/claims/2470008-006) [mechanism/argued] -- Hedge funds threaten the financial system through two distinct channels: directly, by damaging systemically important financial institutions, and indirectly, by generating liquidity shocks and raising volatility in key markets.
  > In addition to posing a direct systemic risk by damaging systemically important financial institutions, hedge funds can also pose an indirect threat to the financial system by generating a liquidity shock and increasing market volatility in key markets.
  Wulf A. Kaal, The Systemic Risk of Private Funds after the Dodd-Frank Act (2014). SSRN: https://ssrn.com/abstract=2470008

**2016**

- [2748096-006](https://wulfkaal.github.io/claims/2748096-006) [mechanism/evidenced] -- Because hedge fund losses are absorbed directly by a large and dispersed body of investors and their equity capital, private fund advisers are unlikely to trigger a systemic event, and their activity may even reduce market volatility.
  > But some research suggests that private fund advisers are unlikely to trigger a systemic event because losses in hedge funds are directly absorbed by the multitude of investors and their equity capital and may actually reduce market volatility
  Wulf A. Kaal, Timothy A. Krause, Hedge Funds and Systemic Risk (2016). SSRN: https://ssrn.com/abstract=2748096

**2021**

- [3782191-037](https://wulfkaal.github.io/claims/3782191-037) [failure/argued] *(failure mode)* -- Corporations centralize power in order to pursue a singular strategy that efficiently exploits market circumstances, but this produces instability when the market swings, because a brittle hierarchy may crash before it can reorganize to handle a new challenge.
  > Corporations tend to have centralized power, because they wish to employ a singu- lar strategy to efficiently exploit the circumstances of the market. However, this leads to instability whenever the market swings.
  Craig Calcaterra, Wulf A. Kaal, Preface to (2021). SSRN: https://ssrn.com/abstract=3782191
- [3962614-012](https://wulfkaal.github.io/claims/3962614-012) [failure/argued] *(failure mode)* -- Traditional VCs struggle in the digital asset market because of that market's significant volatility and because they lack expertise in a market still dominated by several key specialized players.
  > Among those are the significant volatility of the digital asset market and lacking expertise of traditional VCs in the digital asset market which is still dominated by several key specialized players.
  Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/market-volatility.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.