We develop a new method to measure economic policy uncertainty and test its dynamic relationship with output, investment, and employment. We find that, since 2008, economic policy uncertainty in the United States has been at a level approximately two times its long run average. We extend our approach to other countries, finding elevated levels of economic policy uncertainty abroad, as well.
Meta Keywords
policy uncertainty, political uncertainty, economic policy uncertainty, measuring uncertainty, policy, tax uncertainty, tax policy, regulatory uncertainty, regulation, budget, deficit, taxes, federal reserve, policy, spending, european policy uncertainty, canada policy uncertainty