Aqib Aslam, Samya Beidas-Strom, Daniel Leigh, Seok Gil Park, Hui Tong, Saturday, April 18, 2015 - 00:00
Jason Furman, Ron Shadbegian, Jim Stock, Wednesday, February 25, 2015 - 00:00
Arnaud Chevalier, Olivier Marie, Saturday, November 8, 2014 - 00:00
David Miles, Wednesday, October 22, 2014 - 00:00
Charles F Manski, Wednesday, October 1, 2014 - 00:00
Marco Buti, Philipp Mohl, Wednesday, June 4, 2014 - 00:00
Investment in the Eurozone is forecast to remain below trend until 2015, with a particularly large shortfall in the periphery. Low investment reduces aggregate demand, thus lowering short-term growth, and it also hampers medium-term growth through its effect on the capital stock. This column highlights three causes of low Eurozone investment – reduced public investment, financial fragmentation, and heightened uncertainty – and proposes a series of remedies.
Kyle Handley, Nuno Limão, Saturday, November 23, 2013 - 00:00
The impact of policy uncertainty on economic activity is potentially important, but controversial because it is hard to identify and quantify. Recent research provides a framework to identify the impacts of policy uncertainty on firm decisions, and finds it has strong effects in the context of international trade. China’s WTO accession secured its most-favoured nation status in the US, and the evidence shows this reduction in uncertainty can explain a significant fraction of its export boom to the US.
Daniel Sgroi, Monday, November 11, 2013 - 00:00
In the upcoming UK Research Excellence Framework, a small panel of academics are tasked with rating thousands of academic submissions, which will result in university departments being ranked and public money being distributed. Given the enormity of the task and the scarcity of the resources devoted to it, this article discusses a straightforward procedure that might help, based on exactly the Bayesian methods that academic economists study and teach when considering the problem of decision-making under uncertainty.
Masayuki Morikawa, Saturday, November 2, 2013 - 00:00
Reduced policy uncertainty can contribute to a country’s economic growth. This column highlights the negative influence of policy uncertainty and political instability on the growth of Japan. A survey shows that international trade and tax polices pose the greatest uncertainty on Japanese companies. The column concludes with a discussion of the mechanism via which uncertainty affects corporate behavior.
Knut Are Aastveit, Gisle James Natvik, Sergio Sola, Saturday, October 19, 2013 - 00:00
Many analysts blame uncertainty for at least part of advance nations’ poor economic performance since the crisis. This column discusses new research showing that the economic impact of monetary policy is dampened when uncertainty is high. This means that high uncertainty forces monetary policymakers into a trade-off between acting decisively and acting correctly as policy must be more aggressive than otherwise in order to stabilise economic activity. The finding is particularly stark when uncertainty measures from financial markets are utilised.
Geoffrey Heal, Antony Millner, Thursday, June 13, 2013 - 00:00
Uncertainty is intrinsic in climate-change economics. This column argues that it’s here to stay. There will be no accurate predictive tool for predicting economic growth, the emergence of clean-energy technology, or economic vulnerability in light of climate change in the near future. But this is not an excuse not to think about climate economics. Research and policy would do well to be more explicit about what we don’t know. We should avoid subjective guesses, and focus more on credible forecasts from empirically sound, if uncertain, models.
Scott Baker, Nicholas Bloom, Tuesday, February 7, 2012 - 00:00
Reading the business press, one gets the impression that the world of policy is in a very uncertain state around the world. This column presents an up-to-date index of policy uncertainty and suggests that the calming of policy uncertainty may have aided recent economic prospects in the US. Unfortunately, policy uncertainty still appears extremely high in Europe with the Eurozone crisis.
Ashoka Mody, Antu Panini Murshid, Sunday, November 27, 2011 - 00:00
Recent commentary has suggested that capital inflows – long considered a positive for growth – may actually be doing more harm than good. This column presents new evidence reinforcing the conventional interpretation. It finds that volatility is the determining factor. With volatility below a threshold, an inflow of foreign capital promotes growth. But during periods of volatile growth, the effect is opposite.
Charles F Manski, Tuesday, November 22, 2011 - 00:00
Policymakers and the media often rely on official estimates. But with policies that are so complex and often untested, these estimates are at best rough guesses – so why not be honest about it? This column calls for confidence intervals to be used in future policy debates.
Nicholas Bloom, Scott Baker, Steven J. Davis, Saturday, October 22, 2011 - 00:00
Policymakers’ choices dominate headlines in the global crisis. This column distinguishes between economic uncertainty and economic policy uncertainty, constructs an index to measure policy-related uncertainty, and argues that improving policy uncertainty would create millions of US jobs.
Barry Eichengreen, Thursday, June 17, 2010 - 00:00
Financial crises feed on uncertainty. This essay warns that the longer the Eurozone crisis is allowed to linger, the greater will be the damage. But Europe can take concrete actions to bring it to an end. It should make bank stress tests public, provide more clarity on its special purpose vehicle, move forward with restructuring Greece’s debt, and support growth through quantitative easing.
Carlo Favero, Wednesday, November 18, 2009 - 00:00
Today’s global crisis has been compared to the Great Depression in terms of world output, trade, and stock market value. To extend the comparison, this column proposes a new, historically comparable measure of economic uncertainty. The evolution of uncertainty in this crisis has been much less dramatic than in the 1930s.
Nicholas Bloom, Friday, April 17, 2009 - 00:00
This column says that the policy response to the financial crisis seems to have been adequate – we will not slip into another Great Depression. It argues that growth will resume by late 2009, as uncertainty is subsiding due to global cooperation.
Michelle Alexopoulos, Jon Cohen, Tuesday, December 23, 2008 - 00:00
This column claims that uncertainty shocks affect on economic activity with remarkable swiftness, strength, and durability. Capturing expectations of average citizens in Main Street through the use of keywords in main newspapers, it indicates a modest decline of uncertainty since October 2008, suggesting that the worst may be behind us.
Valentina Bosetti, Carlo Carraro, Alessandra Sgobbi, Massimo Tavoni, Monday, September 22, 2008 - 00:00
The layers of uncertainty and complexity that surround the issue of climate change make for difficult mitigation policy design. The authors of DP6973 lend support to a more precautionary strategy, quantifying the economic cost of delay.