We study the effect of systematic uncertainty on firms' precautionary saving motives. As systematic uncertainty changes … methodology, we construct novel, forward-looking measures of firms' exposure to systematic uncertainty through firms' future cash … needs and their costs of external financing. We find that systematic uncertainty increases firm cash holdings through both …

inflation expectations, their determinants, and how inflation expectations shape individuals’ consumption, savings, and …

We derive robust predictions on the effects of uncertainty on short run investment dynamics in a broad class of models … of UK firms and a stock returns-based measure of uncertainty. As predicted we find that uncertainty reduces firms …