Describe what this measures and comment on whether you think this is a good indicator of financial frictions (asymmetric information conditions) in the economy. FRED- St. Louis Fed Financial Stress Index1.51.00.50.0-0.5-1.02010-012010-072011-012011-072012-012012-072013-012013-072014-012014-072015-012015-07Shaded areas indicate U.S. recessions.Source: Federal Reserve Bank of St. Louisfred.stlouisfed.org

A wide variety of indicators are used by economists and financial analysts to measure the variations…

Answered: Describe what this measures and comment…

Describe what this measures and comment on whether you think this is a good indicator of financial frictions (asymmetric information conditions) in the economy

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 4.8P

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Question

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Describe what this measures and comment on whether you think this is a good indicator of financial frictions (asymmetric information conditions) in the economy.

FRED
- St. Louis Fed Financial Stress Index
1.5
1.0
0.5
0.0
-0.5
-1.0
2010-01
2010-07
2011-01
2011-07
2012-01
2012-07
2013-01
2013-07
2014-01
2014-07
2015-01
2015-07
Shaded areas indicate U.S. recessions.
Source: Federal Reserve Bank of St. Louis
fred.stlouisfed.org

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