perhaps the title of the thread is a bit too pompous... clearly, the "Information Age" contributes to efficiency, i.e. information dissemination, electronic transactions etc etc. "globalization" is a parallel phenomenon contributing to efficiency. the effects are clear - there is a huge influx of liquidity into the financial markets. i have spent considerable effort studying a few decades of market behavior in the major markets.. - i understand the higher/lower volatility cycles experienced in the past my guess is that the "average" level of volatility will tend to "trend" down... i am not saying that there will not be high volatility; not at all, no matter how much efficiency and liquidity there is, there will always be events creating volatility etc etc. however, i am guessing that, due to the "new age" effects, the (1) "high" volatility in the present / future will not be as "high" as in the past and (2) "low" or average volatility will be "lower" than in the past. perhaps (1) above is a bit more questionable, due to extreme behavior factors... but (2) seems more likely does anyone have any thoughts on this? is there any reading material or discussion of this issue?