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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