Publication

This report analyzes the effectiveness of two indices - the Financial Stress Index (FSI) and the Economic Sensitivity Index (ESI) - in measuring the economic and financial vulnerability of twelve Central and East European Countries (CEECs). It looks at the methodology used to construct the indices and then uses them to explore how economic turmoil and financial disturbances affected the CEECs between 2001 and 2012. The findings suggest that the FSI can be used as a leading indicator of the financial stability of CEECs, which could in turn help predict future recessions in these countries.