BoE paper experiments with measuring vulnerabilities
Study finds US had highest levels of vulnerability in run-up to 2008 crisis, with Asia and Europe “robust”
Economists at the Bank of England (BoE) have constructed "country-level vulnerability indices" to assess whether quantitative, data-driven models can measure a country's vulnerability to economic shock.
Jack Fisher and Lukasz Rachel's indices can be used to gauge the level of fragility at any point in time, allowing them to assess the "robustness" of different vulnerability measures to various financial variables.
"Our results suggest that in the run-up to the global financial crisis
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