Levels of uncertainty have existed throughout time yet measuring uncertainty in the past has posed many challenges. An Associate Professor of Finance from Kellogg School of Management, Prof. Scott Baker, joined ERSA’s host to discuss his novel method using word frequencies for measuring economic policy uncertainty. This powerful and flexible method means not only that economic policy uncertainty, but also the specific effects thereof on the economy can be measured. In his research, Scott has identified the general trend of uncertainty, its drivers, and how the level of uncertainty during the Covid 19 pandemic compares to that of other phases of history, such as Brexit or the Great Depression. For any policy maker interested in incorporating the effects on uncertainty into their policies, this podcast is not to be missed.
by 