Abstract
We show that the KZ system has a purely topological interpretation in the sense that it may be understood as a variation of complex mixed Hodge structure whose successive pure weight quotients are polarized. This in a sense completes and elucidates work of Schechtman-Varchenko done in the early 1990's. A central ingredient is a new realization of the irreducible highest weight representations of a Lie algebra of Kac-Moody type, namely on an algebra of rational polydifferentials on a countable product of Riemann spheres.
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