This survey features three parts. The first one reviews the most recent literature on the
relationship between domestic (ie, country‐specific) uncertainty and the business cycle, and …

Economists, observers, and policy‐makers often emphasize the role of sentiment as a
potential driver of the business cycle. In this paper, we provide three contributions to this …

Investment fell sharply in the euro area after the financial crisis and has not yet returned to
pre-crisis levels in many core economies. Focusing on the four largest euro-area countries …

We analyze the individual and macroeconomic impacts of heterogeneous expectations and
action rules within an agent‐based model populated by heterogeneous, interacting firms …

This paper analyzes the effect of different types of uncertainty by implementing an in-depth
case study of Mexican peso US dollar exchange rate volatility. The paper exploits unique …

It is well-known that uncovered interest rate parity does not hold empirically, especially at
short horizons. But is it really so? We conjecture that uncovered interest rate parity is more …

We propose a nonrecursive identification scheme for uncertainty shocks that exploits breaks
in the volatility of macroeconomic variables and is novel in the literature on uncertainty. This …

This paper analyses the role of a news-based measure of economic policy uncertainty
(EPU) in explaining time-varying co-movements in economic activity and volatility of 48 US …

In the wake of the recent financial crisis, a growing literature measures, and analyses the
impact of uncertainty on international financial markets. These studies are primarily based …

We estimate a novel measure of global financial uncertainty (GFU) with a dynamic factor
framework that jointly models global, regional, and country‐specific factors. We quantify the …