We find that macroeconomic uncertainty plays a significant role in U.S. monetary policy. First, we construct a measure … of uncertainty as felt by policymakers at the time of making their rate-setting decisions. This measure is derived from a … of being in a high-uncertainty regime. Second, we estimate a monetary policy reaction function that, apart from …

of financial uncertainty over the period 1969-2008. We find evidence in favor of a systematic response to financial … uncertainty over and above that to expected inflation, output gap, and output growth. However, this evidence regards the Greenspan …

We find that macroeconomic uncertainty plays a significant role in U.S. monetary policy. First, we construct a measure … of uncertainty as felt by policymakers at the time of making their rate-setting decisions. This measure is derived from a … of being in a high-uncertainty regime. Second, we estimate a monetary policy reaction function that, apart from …

How damaging are uncertainty shocks during extreme events such as the great recession and the Covid-19 outbreak? Can … activity to a financial uncertainty shock during the great recession. We replicate this evidence with an estimated DSGE … framework featuring a concept of uncertainty comparable to that in our VAR. We employ the DSGE model to quantify the impact on …

This paper investigates the role of monetary policy uncertainty for the transmission of FOMC actions to financial … markets using a novel model-free measure of uncertainty based on derivative prices. We document a systematic pattern in … monetary policy uncertainty over the course of the FOMC meeting cycle: On FOMC announcement days uncertainty tends to decline …

real activity to a financial uncertainty shock during and in the aftermath of the great recession. We replicate this … evidence with an estimated DSGE framework featuring a concept of uncertainty comparable to that in our VAR. We then use the … estimated framework to quantify the output loss due to the large uncertainty shock that materialized in 2008Q3. We find such a …

The decision how to share resources with others often needs to be taken under uncertainty on its allocational …

reallocating labor across sectors or for increased uncertainty about the price of gasoline in explaining the sluggish response of U …

realistic cases where only a limited fraction of climate uncertainty resolves, where future policy-makers have own agendas, or …