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Is Policy Uncertainty Delaying the Recovery?

Many commentators claim that policy uncertainty is holding back the recovery. In Europe and the US there is a sense that recent policy has been more volatile and unpredictable. But is that true? Scott R. Baker, Nicholas Bloom and Steven J. Davis have developed a measure of economic policy uncertainty, finding historic highs in recent years but that it is beginning to recede towards more normal levels.

Author(s)
Scott Baker
Nicholas Bloom
Steven Davis
Publication Date
March, 2012