A Z-Score standardizes economic data — like inflation or real interest rates — so they can be compared objectively over time. A Z-Score of +1.0 indicates the metric is one standard deviation above its long-term historical mean.
On StressTest.pro, we use Macro Z-Scores to map historical market regimes. When real interest rates reach a Z-Score above +1.0, the economy is statistically operating in a 'Restrictive' regime, heavily impacting equity valuations.