Jeffrey Frankel Photo

Jeffrey Frankel

Appointment
James W. Harpel Professor of Capital Formation and Growth
Office Address
79 John F. Kennedy St. Littauer Bldg 217
617-496-3834
Frankel, Jeffrey A. "Why Financial Markets Underestimate Risk." 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.