Measuring uncertainty to identify financial instability

Project Lead: Jaroslava Hlouskova
Team: Ines Fortin, Leopold Sögner
Duration: April 2019 – October 2021
Funding: Jubiläumsfonds Project 18115

This project introduces a new index measuring financial (in)stability in Austria and in the Euro area. The new index is a so-called uncertainty index, which is methodologically fundamentally different from existing financial stability indicators. While financial stability indicators measure the level of (in)stability in a financial system, our new `stress uncertainty index' measures the degree of predictability of (in)stability.