This study examined how uncertainty and global risk affect financial markets in emerging economies, focusing on foreign … structural vector autoregression (VAR) models, the research found that increases in Economic Policy Uncertainty (EPU … spreads influence exchange rates, causing currency depreciation. The findings highlight the interconnectedness of uncertainty …

The effects of sentiment should be strongest during times of heightened valuation uncertainty. As such, we document a … significant amplifying role for market uncertainty in the relation between sentiment and aggregate investment. A one …-standard-deviation increase in uncertainty more than doubles the effect of sentiment on investment. Moreover, allowing uncertainty …

are (1) the model can generate a high and volatile equity premium while a low and smooth risk-free rate, (2) agents … volatility clusterng and persistence; and (3) Bayesian learning itself is unable to generate a significant and positive risk …

This paper examines if overreaction of oil price forecasters is related to uncertainty. Furthermore, it takes into … is markedly reduced when high levels of uncertainty prevail. On the other hand, noisy signals and positive oil price …