Publication . Souto De Moura, Afonso; Duarte, João Bernardo
This thesis examines the effects of different policies on economic growth and macroeconomic uncertainty. The first chapter shows how heterogenous institutional quality in Euro Area economies shapes the transmission of monetary policy to downside risks to growth. The second chapter uses high-frequency data to reveal that monetary policy impacts consumption and gross output within weeks, challenging the consensus view that the
transmission of monetary policy takes “long and variable lags”. The third chapter explores a novel identification strategy to estimate the impact of corporate tax rates hikes, finding sizable responses of firm-level activity unfolding through multiple adjustment mechanisms.
