Discussing business cycles, an article from the Federal Reserve Bank of Dallas stated: “Volatility can also spill over into real and financial asset markets, where severe price movements can produce seemingly arbitrary redistributions of wealth.”
a. What does the article mean when it says that price movements can produce arbitrary wealth redistributions?
b. This article was written before the 2007–2009 recession. Do you think that this recession caused arbitrary redistributions of wealth? What evidence would support your answer?