Recent research has argued that the COVID-19 shock has also brought about a reallocation shock. We examine the evidence … a reallocation shock; we find that it has played a relatively minor role in explaining labor market patterns in the …

decomposition of endogenous variables in trends and cycles, for shock decomposition, for incorporating external judgement, and for …

lower levels of liquid wealth. This supports the notion that the persistence of the unemployment shock is an important …

, 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 …

SMEs experiencing a negative demand shock or facing severe product market competition. Finally, results show that credit …