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Monitoring financial stability: a financial conditions index approach

Author

Listed:
  • Scott Brave
  • R. Andrew Butters
Abstract
Monitoring financial stability requires an understanding of both how traditional and evolving financial markets relate to each other and how they relate to economic conditions. This article describes two new indexes of financial conditions that aim to quantify these relationships.

Suggested Citation

  • Scott Brave & R. Andrew Butters, 2011. "Monitoring financial stability: a financial conditions index approach," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 35(Q I), pages 22-43.
    • Handle: RePEc:fip:fedhep:y:2011:i:qi:p:22-43:n:v.35no.1
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    References listed on IDEAS

    as
    1. Stock J.H. & Watson M.W., 2002. "Forecasting Using Principal Components From a Large Number of Predictors," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 1167-1179, December.
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