demand. Fiscal policy, especially energy price subsidies, can isolate individual energy importers from the shock, but it has …

of inflation expectations during the '60s and the '70s and for the break in the persistence and volatility of inflation …

shocks using methods from the news shocks literature, the analysis finds that innovations in realized stock market volatility … economy. Moreover, investors have historically paid large premia to hedge shocks to realized but not implied volatility. A … model in which fundamental shocks are skewed left can match those facts. Aggregate volatility matters, but it is the …

We propose a novel method to estimate dynamic equilibrium models with stochastic volatility. First, we characterize the … exploits the profusion of shocks in stochastic volatility models, is versatile and computationally tractable even in large … methods to estimate a business cycle model of the U.S. economy with both stochastic volatility and parameter drifting in …

socially desirable. I consider an environment with dispersed information and two aggregate shocks: a productivity shock and a … "news shock" which affects aggregate beliefs. Neither the central bank nor individual agents can distinguish the two shocks …

preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in … dynamics they induce as well as their contribution to macro volatility. Our main finding is that surprise changes in technology …

aggregate inflation. Quantitatively, we confirm the significant role of production networks in shock propagation, emphasizing …