This paper studies the effects of three financial shocks in the economy: a net-worth shock, an uncertainty or risk … shock, and a credit-spread shock. We argue that only the latter can push the nominal interest rate against its zero lower … bound. Further, a recessionary shock to the net worth or the credit spread generates a positive response for loans, which is …

. Moreover, financial vulnerabilities amplify the effects of adverse shocks to the economy, so that even a small shock to …

. Moreover, financial vulnerabilities amplify the effects of adverse shocks to the economy, so that even a small shock to …

. Moreover, financial vulnerabilities amplify the effects of adverse shocks to the economy, so that even a small shock to …

. Moreover, financial vulnerabilities amplify the effects of adverse shocks to the economy, so that even a small shock to …

We disentangle the effects of monetary policy announcements on real economic variables into an interest rate shock … component and a central bank information shock component. We identify both components using changes in interest rate futures and … that a contractionary interest rate shock appreciates the dollar, increases the excess bond premium, and leads to a decline …