Economic Commentary: Cobweb charts as a tool for summarising the stability assessment

Date 28/11/2012

In this Commentary the authors present a method for quantifying and summarising the financial stability assessment. The method highlights a set of variables and indicators that are relevant to the stability assessment. The values of the variables and indicators are determined on the basis of a stability perspective. They are then grouped into a number of main categories. Finally, the assessments of the different variables and indicators are illustrated in a cobweb chart. This makes it possible to present a picture of the financial stability assessment. This applies to the status and development of the main categories, as well as to the status and development of the respective variables and indicators within the different main categories.

 

Cobweb chart are used for the first time in the present Financial Stability Report 2012:2.