, or "uncertainty shocks", are an important model ingredient. First, they account for countercyclical movements in risk … changes in both risk-premia and expected future real rates, uncertainty shocks account for about 1/2 of the variance of long …

LOLRfunding for banks as a quasi-natural experiment. Using micro-level data on banks, firms and loans in Portugal, we generate …

changes in global risk (VIX). We find that inertia (whether the bond behaved as a safe asset in the past) and good … on whether the change in global risk is driven by financial shocks rather than by US monetary policy. …

Using regionally disaggregated data on economic activity, we show that risk sharing plays a key role in shaping the … real effects of monetary policy. With weak risk sharing, monetary policy shocks trigger a strong and durable response in … output. With strong risk sharing, the response is attenuated, and output reverts to its initial level over the medium term …

We document that inflation risk in the U.S. varies significantly over time and is often asymmetric. To analyze the …

Combining euro-area credit register and carbon emission data, we provide evidence of a climate risk-taking channel in … committed to decarbonization. Consistently with the risk-taking channel of monetary policy, tighter policy induces banks to … increase both credit risk premia and carbon emission premia, and reduce lending to high emission firms more than to low …