This paper analyzes the dynamic effects of different macroeconomic shocks on unemployment in Germany. In a first step …, a cointegration analysis of productivity, prices, real wages, employment, and the unemployment rate reveals two long run …

volatility. Empirical evidence indicates that a risky currency is associated with a relatively high interest rate. Taken together …, these two statements associate high-interest-rate currencies with low pricing kernel volatility. We document evidence … identification strategy revolves around using interest rate volatility differentials to make inferences about pricing kernel …

volatility. Empirical evidence implies that a risky currency is associated with a relatively high interest rate. Taken together …, these two statements associate high-interest-rate currencies with low pricing kernel volatility. We document evidence … suggesting that the opposite is true. We approximate the volatility of the pricing kernel with the volatility of the short …