Macroeconomic Effects of Financial Shocks
---- Acknowledgements ----
We would like to thank Pietro Reichlin for a helpful discussion and seminar participants at Bank of Italy, CEMFI in Madrid, CERGE in Prague, ITAM in Mexico, Kansas City Fed, National Bank of Belgium, New York Fed, 2009 SED meeting in Istanbul, University of Alicante, University of Porto, University of Virginia and Wharton School. Some material in this paper was previously incorporated in the companion paper "Financial Innovations and Macroeconomic Volatility". Financial support from the National Science Foundation is gratefully acknowledged. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.