because of pecuniary externalities that are triggered during financial amplification. The paper develops an externality … pricing kernel that quantifies the state-contingent magnitude of such externalities and provides welfare-theoretic foundations …

externalities from capital controls on investor portfolios. The analysis is structured based on information from investor interviews … expectations about future policies - rather than the direct cost of the controls. This evidence of significant externalities from …

, with a contractionary shock leading to a downward revision of expectations. Second, we show that firms’ response depends on … the size and the sign of the shock, with only large and contractionary shocks having a significant negative effect on … expectations. Third, we observe that the different components of central bank communication (i.e. the pure monetary policy shock …

-gressions which explicitly considers the seasonal dependence of the shock. Results suggest the presence of significant country …