We investigate the relationship between inflation uncertainty and monetary policy transmission in the U.S. economy. Monetary policy shocks are identified within the framework of nonlinear structural factor-augmented VARs which allow us to analyze several complementary hypotheses connecting IU...

Purpose: Existing research on uncertainty and bank lending has focused entirely on aggregate uncertainty (i.e., economic policy uncertainty) and its subcomponents, but not considering other uncertainty measures from the specif-ic perspective of financial markets, especially the banking sector....