Using regionally disaggregated data on economic activity, we show that risk sharing plays a key role in shaping the … real effects of monetary policy. With weak risk sharing, monetary policy shocks trigger a strong and durable response in … output. With strong risk sharing, the response is attenuated, and output reverts to its initial level over the medium term …

Using regionally disaggregated data on economic activity, we show that risk sharing plays a key role in shaping the … real effects of monetary policy. With weak risk sharing, monetary policy shocks trigger a strong and durable response in … output. With strong risk sharing, the response is attenuated, and output reverts to its initial level over the medium term …

heightened risk aversion, leading to shifts in investment portfolio allocations and cross-border capital flows; a nd t he r eal e …

policy rules on macro variability. The approach allows for non-Gaussian shock distributions and non-linear underlying …

This paper studies the macroeconomic effects of shocks to idiosyncratic business risk in an economy with endogenously … incomplete markets. I develop a model in which firms face idiosyncratic risk and obtain insurance from intermediaries through … business outcomes leads to an endogenous reduction in risk sharing. This deterioration in risk sharing results from a general …

measures, resulting from the new model, can be used to implement joint risk scenario analysis …

Geopolitical risk cannot be measured in a universal way. We develop new geopolitical risk indicators relying on local … newspaper coverage to account for different perceptions. Using Russia as a case study, we demonstrate that geopolitical risk … shocks identified from local news sources have significant adverse effects on the Russian economy, whereas geopolitical risk …

This paper investigates the interdependence between the risk-pooling activity of the financial sector and: output …, consumption, risk-free rate, and Sharpe ratio in a dynamic general equilibrium model of a productive economy. Due to their … to mitigate their risk through a financial sector. The financial sector pools risky claims issued by different firms …

We examine how the tail risk of currency returns over the past 20 years were impacted by central bank (monetary and … effects last for up to 1 month, and are proportionally higher for joint QE actions. This cross-border source of tail risk is …

big impact on governance mechanisms, altering the equilibriums among different stakeholders and increasing the risk of …, unless properly supported, once again risk being the ultimate losers …