We analyze the contractual relation between workers and their employers when there is nominal risk. The key feature of … eliminate all nominal risk for the parties (by fully indexing the terms of the contracts to the price level) but they would be …

This paper documents several facts on the real effects of economic uncertainty. First, higher uncertainty is associated … with a more dispersed distribution of output growth. Second, the relation is highly asymmetric: A rise in uncertainty is … impact on its upper tail. Third, the negative response of growth to uncertainty shocks is larger when the equity market is …

We analyze a long-term contracting problem involving common uncertainty about a parameter capturing the productivity of …