There is a need to find better models and indicators for large disruptive events, not least in order to be more prepared and mitigate their effects. In this paper we take a step in this direction and discuss the performance of a financial stress indicator with a specific focus on the euro area....

Pt. 1. 2008: after the crash. The worst market crisis in 60 years ; The perilous price of oil ; Paulson cannot be allowed a blank check ; Recapitalise the banking system ; How to capitalize the banks and save finance ; America must lead a rescue of emerging economies -- pt. 2. 2009: The right...