Journal
AUSTRALIAN ECONOMIC REVIEW
Volume 52, Issue 2, Pages 178-199Publisher
WILEY
DOI: 10.1111/1467-8462.12319
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Uncertainty about economic policy in Australia and the United States has increased episodically since the Global Financial Crisis. Existing research focuses on the effects on economic activity, employment and investment. I extend this work to examine the effect of policy uncertainty on global trade volumes, industrial production and cross-border trade and investment for Australia and the United States. Australia's relative resilience to policy uncertainty shocks reflects a larger role for the exchange rate in intermediating foreign shocks and the absence of a recession in Australia during the sample period considered.
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