This tag covers episodes of stress, extreme volatility and breakdowns of confidence in markets. Unlike systemic risk, which denotes a structural fragility, financial instability describes an observable state of tension. It analyses triggers, contagion mechanisms and the responses of authorities to crises.
On 5 February 2018, products designed to sell volatility amplified it in a single session — the innovation meant to manage risk had synchronized behavior. Durably low volatility is often read as a sign of calm. It can be the…
In crisis periods, monetary transmission channels distort or break down, prompting central banks to deploy unconventional instruments. This analysis details how the nature of policy transmission changes when conventional channels seize up.
Since 1990, seven of the eight breaches of the 50 threshold by the VIX have been followed by an S&P 500 rebound over the twelve-month horizon. The empirical regularity is documented and stable; its operational scope remains nevertheless limited by…
Since November 2024, the average VIX stands at 15.1 over eighteen months, 4.4 points below its 1990-2025 average. This durable compression recalls 2017 and 2019 — levels that preceded Volmageddon and the COVID crash — but the macro composition underlying…
Since 1990, the VIX has crossed 30 twenty-four times, 50 eight times, and 80 three times. Each spike documents a specific market dislocation; none repeats identically. The empirical catalog that follows covers the seven major episodes from 1990 to 2026…
Since the beginning of December 2026, volatility has remained elevated across equity and bond markets, after a year marked by periods of calm followed by violent swings. Between shifts in rate expectations, persistent geopolitical tensions, and rapid sector rotations around…
