Staffa, Ruben Marek - Leibniz-Institut für Wirtschaftsforschung Halle - 2023
, except for the response of prices. While sovereign risk raises inflation, uncertainty suppresses price growth - a result …This paper compares macroeconomic effects of Knightian uncertainty and risk using policy shocks for the case of Italy … measures for uncertainty and risk. The identification exploits the quasi-pessimistic behavior under ambiguity-aversion and the …