Why are Markets so Nervous?

Financial markets showed how unstable they can be during the last crisis. We don’t need any more confirmation to that. However investors have recently proved to be extremely nervous. Something is worrying them and it might be an unjustified fear of monetary tightening. Still, journalist Anatole Kaletsky argues that self-fulfilling downward spiral could be avoided by central bankers and governments making clear statements on monetary conditions.

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