The Kansas City Financial Stress Index (KCFSI) edged down from -0.71 in July to -0.78 in August, remaining well below its historical average.
The Kansas City Financial Stress Index (KCFSI) is a monthly measure of stress in the U.S. financial system based on 11 financial market variables.
A positive value indicates that financial stress is above the long-run average, while a negative value signifies that financial stress is below the long-run average. Another useful way to assess the current level of financial stress is to compare the index to its value during past, widely recognized episodes of financial stress.
- PDFFinancial Stress: What Is It, How Can It Be Measured, and Why Does It Matter?
By Craig S. Hakkio and William R. Keeton