There is no consensus about the causes of the reduction in business cycle volatility seen in many major economies over … stability has been fostered by improved monetary policy and by associated changes in the behaviour of inflation, which has … itself led to a reduction in the volatility of economic shocks. Assuming an absence of cataclysmic events, our projections …

financial volatility. Uncertainty shocks hitting in recessions are found to trigger a more abrupt drop and a faster recovery in …

inflation by using a Nonlinear ARDL (NARDL) model, which is compared to a benchmark linear ARDL one. Using monthly data from the …, especially negative ones, have a stronger impact on inflation than OPU ones and capture some of the monetary policy uncertainty …, thereby reducing the direct effect of interest rate changes on inflation. Since EPU shocks reflect, at least to some extent …

countries with high inflation, the output effects of monetary policies are significantly reduced. A lot of variation in the …

of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In …

sector inflation expectations. In contrast, opaque central banks limit their stabilization efforts to avoid disturbing … inflation expectations. As a result, they mute their interest rate response and no longer fully offset anticipated demand shocks …. This leads to macroeconomic volatility that is socially detrimental. …