financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …

that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in … opposite directions while a shock to the net flow from not in the labour force to unemployment drives the rates in the same …

business cycle volatility, hinting at a stabilizing effect of public employment, while public wages correlate weakly and … positively with business cycle volatility, hinting at a destabilizing effect of public wages. To explain these relationships, we …

shock. Third, we present evidence coherent with the idea that more leveraged sectors experience larger employment volatility … market volatility and Okun's elasticity over the business cycle. Second, we highlight a key mechanism linking financial … in normal times deep capital markets lead to tight labor markets. After an adverse liquidity shock, firms that rely much …

Financial frictions are known to raise the volatility of economies to shocks (e.g. Bernanke andGertler 1989). We follow … this line of research to the labor literature concerned by the volatility of labor market outcomes to productivity shocks … are a good candidate to solve the volatility puzzle and rejoin Pissarides (2009) in arguing that hiring costs must be …