I construct a novel measure of household uncertainty based on survey data for European countries. I show that household … uncertainty shocks are not universally like negative demand shocks. Notably, household uncertainty shocks are largely inflationary … role in the transmission of household uncertainty to inflation. I develop an Overlapping Generations New Keynesian model …

I examine the relationship between uncertainty and private household consumption using an ex-ante survey …-based uncertainty indicator that elicits household survey questions referring to the personal household financial position, general … economic situation, unemployment, and inflation expectations, I find that (i) total private household consumption is adversely …