incidents in Western Europe. Considering data of the Global Terrorism Database, the number of terror incidents does - on average … - not affect financial uncertainty. In contrast, based on a behavioral model of terrorism motivated by Schmid and de Graaf … (1982), lagged financial uncertainty contains information for the risk of terror events. Estimation results of the negative …

We study the relationship between foreign exchange trading activity and volatility on the USD/EUR foreign exchange … market on the basis of a unique data set around the events of 09/11/2001. We find that volatility and bid-ask spreads are by … far larger at that time, but the shock is not persistent. The positive correlation between volume and volatility does not …

-dependence; for periods of relatively high and volatile inflation not only the size of price changes (intensive margin) but also the … fraction of price adjustment (extensive margin) is important for aggregate inflation dynamics. Moreover, at the business cycle … frequency, variations in the extensive margin explain a large fraction of inflation variability even for moderate inflation …

We investigate the relationship between inflation and price variation using highly disaggregated, weekly price data for … consumption goods recorded in Germany during 1995, a low inflation period. We find a significant positive correlation between the … correlated with price changes. As the rate of inflation rises, both variability and dispersion become affected. During …