An important role for bank capital is that of a buffer against unexpected losses. As uncertainty about these losses … counterfactual experiment suggests that a decline in uncertainty to the lowest level measured in the sample generates an average … response to increased uncertainty …

This paper quantifies the economic impact of uncertainty shocks in the UK using data that span the recent Great … Recession. We find that uncertainty shocks have a significant impact on economic activity in the UK, depressing industrial … negligible after 18 months. Interestingly, the impact of uncertainty shocks on industrial production in the UK is strikingly …

‘buffer stock’ model of optimal consumption in the presence of labor income uncertainty and credit constraints. Saving in the … uncertainty. An estimated structural version of the model suggests that increased credit availability accounts for most of the … saving rate’s long-term decline, while fluctuations in net wealth and uncertainty capture the bulk of the business …

The paper considers gains from international economic policy coordination when there is uncertainty concerning the …