LAUSR

The study analyses the impact of different uncertainty shocks on industrial production in the Central and Eastern European countries. The paper provides different uncertainty measures which include: industrial, consumer and financial uncertainty, and, unlike previous studies, cover both external (the euro area) and internal (country-specific) sources of uncertainty. We provide evidence that uncertainty is a multidimensional phenomenon: consumer, industrial and financial uncertainty measures do not co-move. The main finding is that industrial production in the CEE countries negatively responds to external uncertainty shocks, whereas the reactions to internal uncertainty shocks are less clear-cut and depend on the category of uncertainty.