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 Research From These Scholars

BFI Working Paper Oct 7, 2019

The Economic Effects of Private Equity Buyouts

Steven J. Davis, John Haltiwanger, Kyle Handley, Ben Lipsius, Josh Lerner, Javier Miranda
BFI Working Paper Oct 1, 2016

An Index of Global Economic Policy Uncertainty

Steven J. Davis
Topics:  Financial Markets, Monetary Policy
BFI Working Paper Jan 16, 2019

Dynamism Diminished: The Role of Housing Markets and Credit Conditions

Steven J. Davis, John Haltiwanger
Topics:  Monetary Policy, Employment & Wages, Fiscal Studies, Economic Mobility & Poverty