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Economic Policy Uncertainty and Its Implications on Economic Recovery: A Case Study of Korea
- 저자 KIM Wongi
- 발간일2016-01-15
Several economists focus on the role of economic policy uncertainty to explain sluggish growth in several countries in the aftermath of the financial crisis. Economic policy uncertainty is a concept of economic risks where the future path of government policy such as fiscal, regulatory, and monetary policy is uncertain. Baker, Bloom, and Davis (2015) show that heightened policy uncertainty makes economic conditions worse in the U.S. To investigate the effects of policy uncertainty in Korea, I conducted a statistical analysis in line with Baker, Bloom, and Davis (2015). The result suggests that an increase in economic policy uncertainty is a potential cause of slow economic recovery in Korea in the aftermath of the financial crisis.
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