We show that systemic risk in the banking sector breeds macroeconomic uncertainty. We develop a model of a production …-driven uncertainty amplifies business cycle volatility and increases risk premia on asset prices. A countercyclical capital buffer lowers … higher probability of a banking panic increases uncertainty in the aggregate economy. We explore the implications of this …

how different sources of uncertainty factor into monetary policy communications. To help markets and others understand its … are being considered in policy formulation. Discussion of uncertainty becomes particularly important when a large shock …

In light of the rising political and economic uncertainty in Europe, we aim to provide a basic understanding of the … impact of economic policy uncertainty and financial market uncertainty on a set of macroeconomic variables such as production … may help to identify avenues for further research based on non-linear processes. We find that stock market uncertainty …

We examine monetary and fiscal interactions in a monetary union model with uncertainty due to imperfect central bank … transparency. It is first shown that monetary uncertainty discourages excessive taxation and may thus reduce average inflation and … output distortions. However, as countries enter the monetary union, this tax-restraining effect of uncertainty is mitigated …