World Perspectives

Uncertainty; Too Many Cooks

Global economic growth and trade have been slower in recent years, and Steven J. Davis of the University of Chicago can tell you why.

  Policy Uncertainty Global economic growth and trade have been slower in recent years, and Steven J. Davis of the University of Chicago can tell you why. He found (see NBER Working Paper No. 22740) that gross domestic product (GDP) is correlated to references of uncertainty contained in newspaper headlines in 16 countries over the past 20 years. He specifically found that economic policy uncertainty has been significantly higher over the past five years than in the prior years studied. Burdening Trade Ivory tower types at the Boston University and Georgetown University conclude that global trade...

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