We rely on a hierarchical volatility factor approach to estimate and decompose time-varying second moments of countries … business cycles, defined as a persistent decline in macroeconomic volatility across the main world economies. This decline in … volatility was induced by a reduction in the underlying global component, uncovering a new level of interconnection of the world …

examines annual data for 98 countries over the period 1961-2007 and finds that lower GDP growth volatility in the period …, suggesting that a reduction in volatility in this period was a more general development …

We develop a dynamic factor model with time-varying parameters and stochastic volatility, estimate it with several … findings, the estimates suggest that global uncertainty plays a primary role in explaining the volatility of inflation …

volatility of emerging and developed economies. We study a multi-sector small open economy in which firms produce and trade …

We build a dynamic factor model with time-varying parameters and stochastic volatility and use it to decompose the … common global uncertainty plays a primary role in explaining the volatility of inflation, interest rates and stock prices …, although to a varying extent over time. Region-specific uncertainty drives most of the exchange rate volatility for all Euro …

sector is important in explaining volatility. Countries with more developed financial sectors experience fewer fluctuations … volatility. The proportion of credit provided to the private sector best explains volatility of consumption and output. Denizer … especially important in reducing consumption and investment volatility. The simple availability of credit to the private sector …