We document the transmission of monetary policy and risk-premium shocks in Hungary, by applying recent advances in the … Bayesian estimation of large VAR models. The method allows extracting information from over 100 series, opening the ""black box … financial stability concerns, monetary policy responds procyclically to risk-premium shocks. We also find that the use of such a …

policy. From the policymaker''s perspective, uncertainty about exchange rate pass-through implies uncertainty about policy … multipliers and the impact of state variables on stabilization objectives. When faced with uncertainty about the strength of … than underestimating it. The analysis suggests that pass-through uncertainty of the magnitude considered does not result in …

We augment a linearized dynamic stochastic general equilibrium (DSGE) model with a tractable endogenous risk mechanism … their conditional distributions. In particular, the model matches the key stylized facts of growth at risk. Accounting for …