• Media type: E-Book
  • Title: The Asymmetric Effects of Uncertainty Shocks
  • Contributor: Paccagnini, Alessia [Author]; Colombo, Valentina [Other]
  • Published: [S.l.]: SSRN, [2020]
  • Published in: CAMA Working Paper ; No. 72/2020
  • Extent: 1 Online-Ressource (52 p)
  • Language: English
  • DOI: 10.2139/ssrn.3666607
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 4, 2020 erstellt
  • Description: This study evaluates the effects of financial uncertainty shocks in the US, investigating the role of the monetary policy stance. Estimating a nonlinear Vector Autoregressive, we find that an uncertainty shock triggers asymmetric and negative effects across the business cycle. The reactions of consumption and investments are state-dependent and drive the fluctuations of GDP. The variance of macroeconomic variables due to the shock is from four to six times larger in recessions than in normal times. A counterfactual exercise shows that the Balance Sheet-related monetary policy mitigates the persistence and the magnitude of the recessionary effects of the shock
  • Access State: Open Access