Is the VIX volatility index (FRED code: VIXCSL) an indicator of broader financial market volatility? Using weekly
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Is the VIX volatility index (FRED code: VIXCSL) an indicator of broader financial market volatility? Using weekly data ending on Fridays, plot from 1994 the VIX,with its scale on the left axis, and the St. Louis Federal Reserve Bank index of financial stress (FRED code: STLFSI), with its scale on the right axis. Describe the financial stress index and comment on how closely related it is to the VIX.
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The St Louis Feds financial stress index is based on eighteen data series including seven interest r...View the full answer
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Related Book For
Money Banking and Financial Markets
ISBN: 978-1259746741
5th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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