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October 6, 2016

Université du Québec à Trois-Rivières (UQTR) - Speech (Webcasts)

Economic trends and monetary policy - Senior Deputy Governor Carolyn Wilkins speaks before the Université du Québec à Trois-Rivières (UQTR). (11:50 (ET) approx.)

Interpreting Volatility Shocks as Preference Shocks

Staff working paper 2016-45 Shaofeng Xu
This paper examines the relationship between volatility shocks and preference shocks in an analytically tractable endogenous growth model with recursive preferences and stochastic volatility. I show that there exists an explicit mapping between volatility shocks and preference shocks, and a rise in volatility generates the same impulse responses of macroeconomic aggregates as a negative preference shock.

Renaud St-Cyr

Renaud St-Cyr is a principal economist in the International Projection Division.
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