On the (de)stabilizing effects of news shocks

Roland Winkler () and Hans-Werner Wohltmann

Economics Letters, 2012, vol. 114, issue 3, 256-258

Abstract: This paper shows that news shocks amplify macroeconomic volatility in any purely forward-looking model, whereas results are ambiguous when including a backward-looking component. We also investigate numerically the volatility effects of news shocks within the Smets and Wouters (2003) model.

Keywords: Anticipated shocks; Business cycles; Volatility (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: On the (de)stabilizing effects of news shocks (2009)
Working Paper: On the (de)stabilizing effects of news shocks (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:3:p:256-258

DOI: 10.1016/j.econlet.2011.10.002

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