What type of measures would typically show significant volatility during economic crises?

Global Financial Market measures are characterized by their significant volatility during economic crises due to their sensitive nature to economic events, investor sentiment, and market perceptions. When crises occur, such as a recession or geopolitical tensions, investors quickly react, leading to rapid changes in stock prices, bond yields, and currency values. These markets are influenced by a multitude of factors, including economic data releases, central bank policy changes, and global uncertainties, which can all lead to abrupt swings in confidence and liquidity.

This volatility is particularly pronounced compared to other measures. For instance, while government spending may fluctuate in response to policy decisions, it does not experience the same immediate or drastic changes as seen in financial markets. Similarly, balance of trade measures can reflect underlying economic conditions but generally do not capture day-to-day market sentiments. Consumer confidence indexes can also fluctuate in a crisis, but the reactions in financial markets tend to be more pronounced and immediate due to the rapid shift in investment strategies and risk assessments by market participants. Thus, global financial market measures serve as a direct reflection of real-time economic sentiment and instability, making them highly volatile during crises.