Robert Engel on Volatility

Robert Engel has a new article in the Financial Times on volatility in financial markets. The crux is on what determines volatility and what we can expect in the current crisis:

Volatility is not yet back to normal primarily because macroeconomic uncertainty is not yet resolved. When the end of the recession becomes more predictable and the recovery is in sight without excessive inflation fears, then volatility should finally return to its normal level just below 20 per cent.