Equity market uncertainty can reduce real GDP – researcher

stock market

A temporary increase in equity market uncertainty could have persistent effects on the economy, a researcher from the US’s Federal Reserve Bank of Kansas City says in an economic letter.

Using historical data on equity market volatility, Brent Bundick estimates the longer-term effects of the increased uncertainty in US equity markets seen in the fourth quarter of last year. He uses the Chicago Board Options Exchange Volatility Index (Vix) as a measure of uncertainty.

During the fourth quarter

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: