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Based on two Markov-switching and one threshold vector autoregressive model, information from the CLIFS and industrial production are combined to identify those episodes of financial market stress that are associated with a substantial negative impact on the real economy.By applying this framework to 27 European Union countries, the paper is a first attempt to provide a chronology of systemic financial stress episodes as a complement to the expert-detected events that are currently available.

It's situated in a secluded part of the Gulf of Kotor.

The city of Kotor has a population of 13,500 and is the administrative center of Kotor Municipality (total area 335 km2 /129 ml2). It shows the port's exact location, along with the real-time cruise ship traffic (if any) in its vicinity - today, and right now.

This paper introduces a new methodology to date systemic financial stress events in a transparent, objective and reproducible way.

The financial cycle is captured by a monthly Country-Level Index of Financial Stress (CLIFS).

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