Project Syndicate
Sept. 25, 2017
Abstract
CAMBRIDGE – During most of 2017, the Chicago Board Options Exchange Volatility Index (VIX) has been at the lowest levels of the last decade. Recently, the VIX dipped below nine, even lower than in March 2007, just before the subprime mortgage crisis nearly blew up the global financial system. Investors, it seems, are once again failing to appreciate just how risky the world is.
Citation
Frankel, Jeffrey A. "Why Financial Markets Underestimate Risk." Project Syndicate, Sept. 25, 2017.