# Professor Michael Spence comments on global market volatility at the World Economic Forum in Davos

1 Faculty News January 20, 2016 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg192x144.jpg?itok=yV529lwz)>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/videos/2016-01-20/central-banks-haven-t-shown-control-of-deflation-spence) -- "I think the underlying fundamental problem is that there is very broad based weakness and fragility in the underlying global market. And so the asset prices went off on a basis of what, with the benefit of hindsight, are unrealistic growth forecasts in China and the emerging markets, in Europe, and so on. And so I think the asset prices are volatile but in the process of resetting down."

[Watch the video](http://www.bloomberg.com/news/videos/2016-01-20/central-banks-haven-t-shown-control-of-deflation-spence)