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.

More on this topic

BFI Working Paper·Mar 10, 2025

The Curious Surge of Productivity in U.S. Restaurants

Austan Goolsbee, Chad Syverson, Rebecca Goldgof, and Joe Tatarka
Topics: COVID-19, Employment & Wages, Industrial Organization
BFI Working Paper·Feb 10, 2025

Policy Interventions and China’s Stock Market in the Early Stages of the COVID-19 Pandemic

Steven Davis, Dingqian Liu, Xuguang Simon Sheng, and Yan Wang
Topics: COVID-19, Financial Markets
BFI Working Paper·Feb 4, 2025

Local GDP Estimates Around the World

Esteban Rossi-Hansberg and Jialing Zhang
Topics: COVID-19, Economic Mobility & Poverty