"Uncertainty and Monetary policy during the Great Recession"

In this paper the authors, Giovanni Pellegrino, Efrem Castelnuovo and Giovanni Caggiano from the Department of Economics and Management of the University of Padova document the large response of real activity to a financial uncertainty shock during and in the aftermath of the great recession. They find such a shock to be able to explain about 60% of the output loss in the 2008-2014 period. Their model also points to the powerful role played by the Federal Reserve's systematic monetary policy in limiting the loss of output during the great recession.

Read the full article here: https://unipd.link/Paper_Pellegrino_Castelnuovo_Caggiano