Volatility

Meaning

Liability to change rapidly and unpredictably, especially for the worse, used of financial markets, political situations, prices, or emotions

Origin / Etymology

Latin volatilis, flying, fleeting (volare = to fly)

Synonyms

Instability Fluctuation Turbulence Unpredictability

Antonyms

Stability Steadiness Predictability

Example Sentence

"The US-Iran conflict increased oil price volatility, threatening India's fiscal calculations given its 85% crude import dependence."

🎯 UPSC Usage

Essential for economy answers on currency markets (rupee volatility), commodity prices (oil price volatility), capital flows (FII volatility), and political context (regime volatility in West Asia). Also used in context of climate, 'rainfall volatility under climate change'. More precise than 'instability' or 'changing prices' in formal answers.

Relevant Subjects