On the (de)stabilizing effects of news shocks
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.
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- Paul Beaudry & Franck Portier, 2004.
"Stock Prices, News and Economic Fluctuations,"
in: Enhancing Productivity (NBER-CEPR-TCER-Keio conference)
National Bureau of Economic Research, Inc.
- Paul Beaudry & Franck Portier, 2004. "Stock Prices, News and Economic Fluctuations," NBER Working Papers 10548, National Bureau of Economic Research, Inc.
- Beaudry, Paul & Portier, Franck, 2003. "Stock Prices, News and Economic Fluctuations," CEPR Discussion Papers 3844, C.E.P.R. Discussion Papers.
- Beaudry, Paul & Portier, Franck, 2003. "Stock Prices, News and Economic Fluctuations," IDEI Working Papers 158, Institut d'Économie Industrielle (IDEI), Toulouse.
- Frank Smets & Raf Wouters, 2002.
"An estimated dynamic stochastic general equilibrium model of the euro area,"
Working Paper Research
35, National Bank of Belgium.
- Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, vol. 1(5), pages 1123-1175, 09.
- Michael Woodford, 2009.
"Convergence in Macroeconomics: Elements of the New Synthesis,"
American Economic Journal: Macroeconomics,
American Economic Association, vol. 1(1), pages 267-79, January.
- M. Woodford., 2010. "Convergence in Macroeconomics: Elements of the New Synthesis," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 10.
- Schmitt-Grohé, Stephanie & Uribe, Martín, 2009.
"What’s News in Business Cycles,"
CEPR Discussion Papers
7201, C.E.P.R. Discussion Papers.
- Paul Beaudry & Bernd Lucke, 2010.
"Letting Different Views about Business Cycles Compete,"
in: NBER Macroeconomics Annual 2009, Volume 24, pages 413-455
National Bureau of Economic Research, Inc.
- Paul Beaudry & Bernd Lucke, 2009. "Letting Different Views about Business Cycles Compete," NBER Working Papers 14950, National Bureau of Economic Research, Inc.
- Fève, Patrick & Matheron, Julien & Sahuc, Jean-Guillaume, 2009. "On the dynamic implications of news shocks," Economics Letters, Elsevier, vol. 102(2), pages 96-98, February.
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