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November/December 2009, 
Vol. 91, No. 6
Posted 2009-11-02

What Happened to the U.S. Stock Market? Accounting for the Past 50 Years

by Michele Boldrin and Adrian Peralta-Alva

The extreme volatility of stock market values has been the subject of a large body of literature. Previous research focused on the short run because of a widespread belief that in the long run the market reverts to well-established fundamentals. The authors' research suggests this belief should be questioned.