eCite Digital Repository

Impact of global uncertainty on the global economy and large developed and developing economies


Kang, W and Ratti, RA and Vespignani, J, Impact of global uncertainty on the global economy and large developed and developing economies, Applied Economics, 52, (22) pp. 2392-2407. ISSN 0003-6846 (2020) [Refereed Article]

Copyright Statement

2019 Informa UK Limited, trading as Taylor & Francis Group

DOI: doi:10.1080/00036846.2019.1690629


Global uncertainty shocks are associated with a sharp decline in global inflation, growth and interest rate. Global uncertainty shocks have more protracted, statistically significant and substantial effects on global growth, inflation and interest rate than U.S. uncertainty shocks. When controlling for domestic uncertainty, the decline in output following a rise in global uncertainty is statistically significant in each large country, except for the decline for China. For most economies, a positive shock to global uncertainty has a depressing effect on prices and official interest rates exceptions are Brazil, Mexico and Russia, which are economies with large capital outflows during financial crises.

Item Details

Item Type:Refereed Article
Keywords:global, uncertainty shocks, monetary policy, FAVAR
Research Division:Economics
Research Group:Applied economics
Research Field:International economics
Objective Division:Economic Framework
Objective Group:International trade policy
Objective Field:International trade policy not elsewhere classified
UTAS Author:Vespignani, J (Associate Professor Joaquin Vespignani)
ID Code:136692
Year Published:2020 (online first 2019)
Web of Science® Times Cited:13
Deposited By:TSBE
Deposited On:2020-01-14
Last Modified:2021-05-12
Downloads:3 View Download Statistics

Repository Staff Only: item control page