Fear Thy Neighbor : Spillovers from Economic Policy Uncertainty

The Resource Fear Thy Neighbor : Spillovers from Economic Policy Uncertainty

Label

Fear Thy Neighbor : Spillovers from Economic Policy Uncertainty

Title remainder

Spillovers from Economic Policy Uncertainty

Statement of responsibility

Nina Biljanovska

Language

eng

Summary

High levels of economic policy uncertainty in various parts of the world revamped the debate about its impact on economic activity. With increasingly stronger economic, financial, and political ties among countries, economic agents have more reasons to be vigilant of foreign economic policy. Employing heterogeneous panel structural vector autoregressions, this paper tests for spillovers from economic policy uncertainty on other countries' economic activity. Furthermore, using local projections, the paper zooms in on shocks originating in the United States, Europe, and China. Our results suggest that economic policy uncertainty reduces growth in real output, private consumption, and private investment, and that spillovers from abroad account for about two-thirds of the negative effect. Moreover, uncertainty in the United States, Europe, and China reduces economic activity in the rest of the world, with the effects being mostly felt in Europe and the Western Hemisphere

Cataloging source

CEF

Government publication

international or intergovernmental publication

Index

no index present

Literary form

non fiction

Nature of contents

dictionaries

Series statement

IMF Working Paper

Context

Context of Fear Thy Neighbor : Spillovers from Economic Policy Uncertainty

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Context

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