We propose a novel identification scheme for a non-technology business cycle shock, that we label "sentiment." This is … a shock orthogonal to identified surprise and news TFP shocks that maximizes the short-run forecast error variance of an … shock produces a business cycle in the US, with output, hours, and consumption rising following a positive shock, and …

generating the pre-crisis productivity slowdown, while starting from the Great Recession a shock to liquidity demand is … inflation response following a recessionary shock and hence has important implications for both the negligible fall in inflation …

generating the pre-crisis productivity slowdown, while starting from the Great Recession a shock to liquidity demand is … ation response following a recessionary shock and hence has important implications for both the negligible fall in in ation …