stronger than that of the long end (i.e., of long term ones). In other words, a financial uncertainty shock causes a temporary … recovery in real activity after a financial uncertainty shock. …

Using regionally disaggregated data on economic activity, we show that risk sharing plays a key role in shaping the … real effects of monetary policy. With weak risk sharing, monetary policy shocks trigger a strong and durable response in … output. With strong risk sharing, the response is attenuated, and output reverts to its initial level over the medium term …

recessionary effects of uncertainty and can result in aggregate dynamics consistent with a supply-side shock. …

Using regionally disaggregated data on economic activity, we show that risk sharing plays a key role in shaping the … real effects of monetary policy. With weak risk sharing, monetary policy shocks trigger a strong and durable response in … output. With strong risk sharing, the response is attenuated, and output reverts to its initial level over the medium term …

aggregate risk with entrepreneurs, and therefore bear uncertainty in their loan portfolios. Unexpected aggregate shocks will …

strain, as reflected by a sizeable risk premium on government debt. Specifically, they consider a 'sovereign risk channel …,' through which sovereign default risk spills over to the rest of the economy, raising funding costs in the private sector. The … model. They show that, if monetary policy is constrained in offsetting the effect of higher sovereign risk on private …