average markups along with monetary policy play a role in the transmission of household uncertainty to inflation. These …

. Adding inflation as a second variable, we uncover two states in which expected consumption growth is low, one with high and … one with negative expected inflation. Embedded in a general equilibrium asset pricing model with learning, these dynamics … alternative derivation for a measure of time-varying disaster risk suggested by Wachter (2013), implying that both the disaster …