The current paper broadens the understanding for the role of uncertainty in the context of a macroeconomic environment …. It focuses on the implications of uncertainty shocks on indicators that tend to precede financial crises. In an empirical … analysis we show for a set of four euro area countries that negative uncertainty shocks, while accompanied by favorable effects …

The current paper broadens the understanding of the role played by uncertainty in the context of macroeconomic … fluctuations. It focuses on the implications of uncertainty shocks for indicators that tend to precede financial crises. In an … empirical analysis we show for a set of four euro area countries that negative uncertainty shocks, while boosting economic …

This paper examines the role of uncertainty shocks in a one-sector, representative-agent dynamic stochastic general …-equilibrium model. When prices are flexible, uncertainty shocks are not capable of producing business-cycle comovements among key macro … variables. With countercyclical markups through sticky prices, however, uncertainty shocks can generate fluctuations that are …

macroeconomic instability. In their place, economists have singled out financial and uncertainty shocks as potentially important … increases in economic uncertainty are strongly associated with a widening of credit spreads, an indication of a tightening in … financial conditions and economic uncertainty and to trace out the impact of these two types of shocks on the economy. The …