Office Of Financial Research Update: Interconnectedness In The Global Financial Market

The OFR released a research paper today, entitled, "Interconnectedness in the Global Financial Market." This working paper shows how network analysis can facilitate the monitoring of movements by stocks in the global financial system over time. The paper analyzes nearly 4,000 stocks in 15 countries. It concludes that stock returns tend to move together within regions — but not across them — in times of stability, but move in sync globally in times of crisis.

The paper is posted on the OFR website at: https://financialresearch.gov/working-papers/.

The OFR home page is at: https://financialresearch.gov/.