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One channel of business cycle shock transmission which gained attraction only recently is the confidence channel. The … aim of the paper is to find out whether the confidence channel is actually working between the US and Germany. This is … German producer confidence and the significance of asymmetric reactions is tested. The results show that there is a …
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shock has remained fairly stable. Simulations from a non-linear DSGE model suggest that these empirical results are …
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What are the economic implications of financial and uncertainty shocks? We show that financial shocks cause a decline in output and goods prices, while uncertainty shocks cause a decline in output and an increase in goods prices. In response to uncertainty shocks, firms increase their markups,...
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