Journal Article

The Persistent Effects of the Temporary Tightening in Financial Conditions

Abstract: Market-based measures of uncertainty, a common proxy for broader financial conditions, rose sharply in the fourth quarter of 2018 but have retreated to more normal levels over the last few months. While the recent increase in uncertainty was brief, the temporary tightening in financial conditions will likely have longer-lasting effects on economic activity and prices.

Keywords: Chicago Board Options Exchange Volatility Index; VIX; Equity Markets; Uncertainty Measures; Financial Conditions;

JEL Classification: G10; G12;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2019-04-17

Issue: April 17, 2019

Pages: 4