complementary positive central bank information shock raises both. These two shocks have intuitive and very different effects on the … point formally and offer an interpretation of the central bank information shock using a New Keynesian macroeconomic model …

cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

through error spillover effects. Bootstrapped error bands are also provided for the cross country responses of a shock to the …

, 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 …

We study what makes government bonds a safe asset. Building on a sample of monthly changes in government bond yields in … changes in global risk (VIX). We find that inertia (whether the bond behaved as a safe asset in the past) and good …

A safe asset is of high credit quality, retains its value in bad times, and is traded in liquid markets. We show that … bonds issued by the European Union (EU) are widely considered to be of high credit quality, and that their yield spread over …

to have a significant effect on economic activity and credit market variables, but to some extent also inflation, in all …

credit market for the period 2010-13. Second, we provide a description of the relationship between credit difficulties and … correlation between credit difficulties and adjustments along both the extensive and the intensive margin. In the presence of … credit market difficulties, firms cut wages by reducing the variable part of wages. This evidence suggests that credit shocks …