De Grauwe: Right to See Volatility With Such Uncertainty

The transcript discusses the unexpected market reactions following Trump's victory, highlighting the rapid shift from a bond sell-off to an equity market rally. It explores the volatility caused by uncertainty and the potential paradigm shift in economic models due to political changes like Brexit and Trump's presidency. The discussion also covers market dynamics, focusing on the stretched positioning in bond proxies and the implications of potential fiscal stimulus under Trump's administration.

What factors contributed to the bond sell-off and equity market rally mentioned in the text?

How did the uncertainty surrounding the Trump presidency affect market volatility according to the discussion?

What is meant by the term 'jump condition' in the context of economic paradigms as discussed in the text?

Discuss the implications of the political undercurrents mentioned in relation to Brexit and the Trump election on market dynamics.

What changes in fiscal policy expectations were highlighted in the text, and how might they impact the economy?