‘Uncertainty shocks’ can do long-term harm – BoE paper
“Uncertainty shocks” cause damage to the economy not just in the short term but potentially for as long as 10 years, new research published by the Bank of England finds.
Dario Bonciani and Joonseok Jason Oh present empirical results that suggest uncertainty shocks in the US have “significant” negative effects on the “main macroeconomic aggregates” and on productivity that last for 40 quarters.
In the paper, The long-run effects of uncertainty shocks, they go on to “rationalise” the empirical
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Macroeconomics
Sarb deputy warns on growth prospects
Cassim says economy is “remarkable for the wrong reasons”
Blanchard and Summers say higher inflation likely to persist
Veteran economists say structural factors are likely to push up neutral rate and inflation
China sets modest growth target ahead of leadership reshuffle
Outgoing premier Li calls for accommodative policy and warns of property sector risks
BoE’s Mann challenges idea of ‘long and variable lags’
MPC member says changing transmission of policy in UK may demand more tightening
It is time to rethink the balance of monetary and fiscal policy
Jagjit Chadha says the current moment calls for subtle policy engineering
Bank of Canada paper tests ‘inflation tax’ in lab experiment
Experimental design could be used to test other aspects of monetary policy, researchers say
Spain’s De Cos calls for greater ambition in EU fiscal reforms
Redesign of fiscal rules must be supported by wider reform of financial governance, governor says
Dallas Fed research casts doubt on ‘soft landing’
US Fed chair Jerome Powell sees US worker shortages as “more structural than cyclical”