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Why markets crash

Why are stock markets like riots? Why is the economy like the Beatles? And what's it all got to do with the price of fish? Chris Dillow looks at new a approach to economics
Why markets crash

Since mid-February the All-Share index has fallen more than one-third and recovered more than 20 per cent. One way to understand such huge price swings is with a new approach to economics, known as complexity economics.

To see how this works, think about something else we’ve seen in recent weeks – the riots that sometimes accompanied the protests over the killing of George Floyd.

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