Bloomberg Financial Conditions Index Turns Positive / by urbanexus

On December 22, 2009, Mark Perry[1]observed  at his blog ( http://mjperry.blogspot.com) that the Bloomberg Financial Conditions Index had turned positive for the first time since August 2007.  The index  combines yield spreads and indices from the Money Markets, Equity Markets, and Bond Markets into a normalized index. The values of this index are z-scores, which represent the number of standard deviations that current financial conditions lie above or below the average of the 1992-June 2008 period. You may view the Bloomberg Financial Conditions Index at  http://www.bloomberg.com/apps/quote?ticker=BFCIUS%3AIND  .


[1] Professor of Economics and Finance at the Flint campus of  the University of Michigan