I construct a novel measure of household uncertainty based on survey data for European countries. I show that household … uncertainty shocks are not universally like negative demand shocks. Notably, household uncertainty shocks are largely inflationary … role in the transmission of household uncertainty to inflation. I develop an Overlapping Generations New Keynesian model …

We study the development of bank lending in the U.S. after four large jumps in uncertainty using an event study … uncertainty. Lending by smaller banks is also less responsive to increases in uncertainty. Banks with a higher capitalization …-bank holding company. This heterogeneity across banks suggests that declines in bank lending following increases in uncertainty are …