The choice of instruments for mitigating economic volatility is a serious consideration for policymakers and important … markets are more effective than conventional economic policies, such as fiscal interventions, in reducing economic volatility …

(1) level and risk dynamics. The latter includes (2) tail risk and crisis probability as well as (3) the Volatility …

the Great Moderation. While the volatility of financial price variables also follows such pattern, financial quantity … variables have experienced a continuous immoderation. We examine these patterns in volatility by estimating a DSGE model with …

uncertainty is proxied by the (unobserved) volatility of the structural shocks, and a regime change occurs whenever credit …

in the volatility of credit spreads is driven by an easier access to credit, while a higher exposure to financial risk …

The Great Moderation in the U.S. economy was accompanied by a widespread increase in the volatility of financial … volatility slowdown in real and nominal variables and in shaping the transmission mechanism of financial shocks. Our model … accounts for the increase in the volatility of financial variables through larger financial shocks, but the vulnerability of …

growth worldwide. This nonlinearity stems from asymmetric responses of domestic and international credit conditions following … shifts the entire conditional distribution to the left, causing future economic growth to worsen. In times of optimism …