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Yikes! Trade and Economic Policy Uncertainty

Summary:
First, overall (news-based) economic policy uncertainty: Figure 1: Economic Policy Uncertainty index (blue), and centered seven day moving average (red). Source: policyuncertainty.com accessed 6/11, and author’s calculations. Second, how the trade policy component has jumped in the Trump era. Figure 2: Economic Policy Uncertainty index (blue), and trade policy categorical index (dark red), through March 2018. Source: policyuncertainty.com accessed 6/11.

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First, overall (news-based) economic policy uncertainty:

Yikes! Trade and Economic Policy Uncertainty
Figure 1: Economic Policy Uncertainty index (blue), and centered seven day moving average (red). Source: policyuncertainty.com accessed 6/11, and author’s calculations.

Second, how the trade policy component has jumped in the Trump era.

Yikes! Trade and Economic Policy Uncertainty
Figure 2: Economic Policy Uncertainty index (blue), and trade policy categorical index (dark red), through March 2018. Source: policyuncertainty.com accessed 6/11.

Menzie Chinn
He is Professor of Public Affairs and Economics at the University of Wisconsin, Madison

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