Policy Uncertainty and the Economy: A New Index To Gauge the Pain
Time: 10:00 AM – 12:00 PM
As the U.S. fiscal cliff looms, government debt mounts and the euro remains embattled, the topic of policy uncertainty is attracting more attention. Some economists suggest that high levels of uncertainty partly explain the sluggish economic recovery following the financial crisis and Great Recession of 2009. In an attempt to quantify policy uncertainty and its role in economic performance, Steven Davis of AEI and two Stanford economists, Scott Baker and Nicholas Bloom, have developed a new index that draws on media coverage of uncertainty, expirations of temporary tax provisions and disagreement among professional forecasters about the future outlook of inflation and government spending. Their index offers a new tool for assessing the level of uncertainty and its effects on household and business spending, investing and hiring. At this event, Davis will present his research on the topic and a panel of experts will discuss.
For more information and to RSVP for this event, please visit http://www.aei.org/events/2012/10/19/policy-uncertainty-and-the-economy-a-new-indexto-gauge-the-pain/.