Müller, Gernot; Dietrich, Alexander; Schoenle, Raphael - 2021
impact on GDP growth. Salience of rare disasters through media coverage increases the disaster probability by up to 7 … interest by about 65 basis points and, assuming a conventional Taylor rule for monetary policy, inflation and the output gap by … 0.3 and 0.2 percentage points, respectively. The effect is considerably stronger if monetary policy is constrained by …