As the intellectual battle raged over what activist stabilisation policy could, in fact, achieve, the economic and financial upheavals of the 1970s ushered in a period in which financial variables were suddenly seen as much more important – money did matter after all – and discussion focussed much more on financial quantities.
When volatilities are low, the strategies systematically increase riskier investment positions, and vice versa. Here too, procyclical influence on market liquidity is a central concern. One factor which many, if not all, of these developments have in common is the relentless drive towards digitalisation.