Rising Policy Uncertainty

I review evidence of rising policy uncertainty in the U.S. and global economies, drawing heavily on newspaper-based measures. Examples from countries around the world illustrate the role of political and policy developments as drivers of fluctuations in economic uncertainty. I also highlight the prominent role of trade policy as a source of uncertainty and stock market volatility since March 2018, when U.S.-China tensions began to escalate. Lastly, I offer remarks on the interplay between policy uncertainty and economic performance.

Reference Information

Author: 

Steven J. Davis
Publisher: 
National Bureau of Economic Research
Publication Date: 
September 2019