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Uncertainty and the Great Slump

Jason Lennard

Economic History Review, 2020, vol. 73, issue 3, 844-867

Abstract: This article investigates the impact of economic policy uncertainty on the British interwar economy. The first type of evidence examined is qualitative. The historical record shows that contemporaries regularly reported the incidence and consequences of major uncertainty shocks. The second type of evidence analysed is quantitative. Based on a new index of economic policy uncertainty constructed from newspapers and vector autoregressions, the results suggest that uncertainty was an important source of economic fluctuations in Britain between the wars.

Date: 2020
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Citations: View citations in EconPapers (19)

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https://doi.org/10.1111/ehr.12970

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Working Paper: Uncertainty and the Great Slump (2020) Downloads
Working Paper: Uncertainty and the Great Slump (2019) Downloads
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