This chapter reviews and synthesizes our current understanding of the shocks that drive
economic fluctuations. The chapter begins with an illustration of the problem of identifying …

This paper proposes and implements a novel structural VAR approach to the identification of
news shocks about future technology. The news shock is identified as the shock orthogonal …

There is a widespread belief that changes in expectations may be an important independent
driver of economic fluctuations. The news view of business cycles offers a formalization of …

This paper studies the potential gains of monetary and macro-prudential policies that lean
against house-price and credit cycles. We rely on a model that features Borrowers and …

We identify news shocks to US defence spending as the shocks that best explain future
movements in defence spending over a five‐year horizon and are orthogonal to current …

We examine whether the news shocks, as explored in Beaudry and Portier (2004), can be a
major source of aggregate fluctuations. For this purpose, we extend a standard dynamic …

Although empirical evidence reveals a strong correlation between oil price volatility and
unemployment, the transmission mechanism of these two variables is unclear. We …

This paper documents large revisions in a widely used series of utilization-adjusted total
factor productivity (TFP) by Fernald (2014) and shows that these revisions can materially …

We survey literature comparing inflation targeting (IT) and price‐level targeting (PT) as
macroeconomic stabilisation policies. Our focus is on New Keynesian models and areas that …

Psychological factors are commonly believed to play a role on cyclical economic
fluctuations, but they are typically omitted from state-of-the-art macroeconomic models. This …