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Making Sense of the Economic Impact of the Coronavirus

After Hours

CHAPTER

How Alarmed Should People Be?

The big economic news over the past couple days has been, of course, the dramatic downward movement in the stock market. So my first question to both of you is, how alarmed should people be? And more broadly, assuming we can expect lots of market volatility in the days ahead, how should people be absorbing the headlines and reacting to them? Yes, o, that's a great set of questions. Maybe we should just begin by thinking about, in general, what stock markets do, and then think about why it's gotten so crazy in them. One has to remember that markets are trying to process a huge amount of information ina uncertain time,. What you're going to have is a

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