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Title: Uncertainty shocks and monetary policies Authors:  Valentina Colombo - University of Bologna (Italy) [presenting]
Abstract: The effects of financial uncertainty shocks on monetary policy in the United States are investigated. Financial uncertainty is captured by appealing to some indicators recently developed. Relying on a nonlinear VAR, we isolate the effects of uncertainty shocks in both recessionary and expansionary periods. Uncertainty shocks trigger negative macroeconomic fluctuations across the business cycle. The asymmetric effects are persistent when we include the recent recession. To reduce the fall in macroeconomic variables, the unconventional monetary policy plays an important role.