model. We find that a union aggregate systemic risk shock results in a sharp decline in output, with two thirds of the …

-Carlo experiments. The estimated impulse responses indicate that a positive shock to the target is associated with a large increase in … inàation and long-term interest rates in the US and the industrialised world. Target shocks are estimated to be a vital factor …

by idiosyncratic, and to a lesser extent also world, shocks. Additionally, real shocks prove relevant rather than nominal …

assess the effects of an uncertainty shock in the Euro area. This allows us to treat macroeconomic uncertainty as a latent … consequences jointly, and most are based on single country models. We analyze the special case of a shock restricted to the Euro … for all countries over a period of roughly a year following an uncertainty shock. Moreover, equity prices, short …