Is the VIX volatility index (FRED code: VIXCSL) an indicator of broader financial market volatility? Using weekly

Question:

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

Question Posted: