There are several candidate explanations for macro-fluctuations. Two of the most common discussed sources are surprise changes in disembodied technology and monetary innovations. Another popular explanation is found under the heading of a preference or more generally a demand shock. More...

Recent empirical literature delivered, based on different structural VAR approaches, controversial results concerning the role of anticipated technology — news — shocks in business cycle fluctuations. We deal with this controversy and investigate (i) the extent to which two prominent...