040072 SE OeNB Guest Lecture: (2024S)

Over the last years, uncertainty has become a major challenge that private and public decision makers have to deal with. This course will give an overview of the recent developments in the macroeconomics of uncertainty.

We will first review the different empirical measures of economic uncertainty and examine its effects on macroeconomic outcomes. We will be particularly interested in the link between uncertainty and economic volatility. Then, we will discuss the theoretical mechanisms through which uncertainty affects individual decisions (precautionary behaviors, risk aversion, etc.) and the amplication mechanisms of uncertainty shocks.

This course is at Ph.D. and advanced M.Sc. level.