Politics vs. the Economy? When Policy Uncertainty Curbs Economic Growth (2015)

Does policy uncertainty curb economic growth? “Yes”, said Professor Steven Davis, University of Chicago Booth School of Business, at a seminar organized by IFN. A Swedish example of uncertainty created by the politicians is the government's announcement that profit distribution in the service sector will be restricted. Steven Davis also pointed to the refugee flows as creating uncertainty in European societies. Davis is co-founder of the Economic Policy Uncertainty Index, which measures economic uncertainty and its impact on production, investment, and employment. Other seminar and panel participants were Max Elger, State Secretary in the Ministry of Finance, Ulf Kristersson, Economic Policy Spokesperson for the Moderate Party, and Professor John Hassler, Chairman of the Swedish Fiscal Policy Council.