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We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic …
Persistent link: https://www.econbiz.de/10013065796
We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic …
Persistent link: https://www.econbiz.de/10013055640
investment and hiring. Productivity growth also falls because this pause in activity freezes reallocation across units. In the … medium term the increased volatility from the shock induces an overshoot in output, employment and productivity. Thus, second … oil-price shock and the 9/11 terrorist attack. This paper offers a structural framework to analyze the impact of these …
Persistent link: https://www.econbiz.de/10012751817
investment and hiring. Productivity growth also falls because this pause in activity freezes reallocation across units. In the … medium term the increased volatility from the shock induces an overshoot in output, employment and productivity. Thus, second … oil-price shock and the 9/11 terrorist attack. This paper offers a structural framework to analyze the impact of these …
Persistent link: https://www.econbiz.de/10012465265
We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic …
Persistent link: https://www.econbiz.de/10012460415
In this paper we provide a model of the macroeconomic implications of safe asset shortages. In particular, we discuss the emergence of a deflationary safety trap equilibrium with high risk premia. It is an acute form of a liquidity trap, in which the shortage of a specific form of assets, safe...
Persistent link: https://www.econbiz.de/10013006687