Domestic and Global Uncertainty: A Survey and Some New Results

Melbourne Institute Working Paper No. 13/19

Date: November 2019

Author(s):

Efrem Castelnuovo

Abstract

This survey features three parts. The first one covers the recent literature on domestic (i.e.,country-specific) uncertainty and offers ten main takeaways. The second part reviews contributions on the fast-growing strand of the literature focusing on the macroeconomic effects of uncertainty spillovers and global uncertainty. The last part proposes a novel measure of global financial uncertainty and shows that its unexpected variations are associated to statistically and economically fluctuations of the world business cycle.

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