Using theoretical and empirical analyses, this paper shows that the expectation dynamics induced by information asymmetry between the Central Bank (CB) and the public can cause the price puzzle. The signalling and learning dynamics between the CB and a representative private-sector agent under...

We employ a time-varying parameter VAR to examine the dynamic effect of uncertainty shocks on unemployment during different recessions. We find that the impact of uncertainty shocks during the Great Recession is significantly larger compared to previous recessions. Empirical studies should...