This paper studies the volatility implications of anticipated cost-push shocks (i.e. news shocks) in a New Keynesian … lead in both policy regimes to a higher (lower) volatility in the output gap and in the central bank’s loss than an … unanticipated shock of the same size. This inversion of the volatility effects of news shocks follows from the inverse relation …

Most of the reduction in GDP volatility since the 1983 is accounted for by a decline in comovement of output among … industries that hold inventories. This decline is not simply a passive byproduct of reduced volatility in common factors or …. Structural changes accounted for more than 80 percent of the reduction in output volatility, thus weakening the case for "good …

volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …

The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …

volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …

The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …

inflation moderation, and 13% of the growth moderation, while smaller oil shocks accounted for 11% of the inflation moderation … and 7% of the growth moderation. This notwithstanding, better monetary policy explains the bulk of the inflation … moderation, while most of the growth moderation is explained by smaller TFP shocks …

the volatility of output. However, in the model, we find that the stabilizing effect is only due to a composition effect … and it is not present when we look at the volatility of private output. Given that empirically we also observe a negative … correlation between government size and the volatility of consumption, we modify the model by introducing rule-of-thumb consumers …