We propose a TVP-VAR with stochastic volatility for the unemployment rate, core inflation and the federal funds rate … rise in monetary policy uncertainty increases unemployment and lowers core inflation; the effects on unemployment in … particular are robust (a gradual 0.4 percentage point increase), lasting more than two years after the initial shock. Interest …

We propose a TVP-VAR with stochastic volatility for the unemployment rate, core inflation and the federal funds rate … rise in monetary policy uncertainty increases unemployment and lowers core inflation; the effects on unemployment in … particular are robust (a gradual 0.4 percentage point increase), lasting more than two years after the initial shock. Interest …

socially desirable. I consider an environment with dispersed information and two aggregate shocks: a productivity shock and a … "news shock" which affects aggregate beliefs. Neither the central bank nor individual agents can distinguish the two shocks …

suggest that an increase in the policy rate by 1% is associated with a rise in unemployment and inflation volatility of about …