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Fear Thy Neighbor Spillovers from Economic Policy Uncertainty Book PDF Summary

High levels of economic policy uncertainty in various parts of the world revamped the de- bate 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 for- eign economic policy. Employing heterogeneous panel structural vector autoregressions, this paper tests for spillovers from economic policy uncertainty on other countries' economic ac- tivity. 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 re- duces 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.

Detail Book of Fear Thy Neighbor Spillovers from Economic Policy Uncertainty PDF

Fear Thy Neighbor  Spillovers from Economic Policy Uncertainty
  • Author : Nina Biljanovska
  • Release : 15 November 2017
  • Publisher : International Monetary Fund
  • ISBN : 9781484328903
  • Genre : Business & Economics
  • Total Page : 34 pages
  • Language : English
  • PDF File Size : 17,6 Mb

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