. We document two new facts using VAR methods. First, a (positive) shock to future TFP generates a significant decline in …, VAR methods also establish a tight link between TFP news shocks and shocks that explain the majority of un … for the propagation of news shocks. A DSGE model enriched with a financial sector generates very similar quantitative …

rely on a New Keynesian DSGE model with a banking sector in which we introduce imperfect information about a limited …

the leading shock candidates can explain fluctuations in output and hours. It concludes that we are much closer to …

, the shock create an aggregate supply effect where output growth and inflation move in opposite directions, and generates a …