US uncertainty shocks on real and financial markets: A multi-country perspective

Jose Gomez-Gonzalez, Jorge Hirs-Garzon and Jorge Uribe

Economic Systems, 2024, vol. 48, issue 3

Abstract: The international propagation of uncertainty shocks from the United States is not fully understood, despite extensive literature on domestic effects. This study examines the impact of U.S. financial, macroeconomic, and policy uncertainty on credit growth, stock prices, economic activity, bond yields, and inflation in five major recipients of U.S. foreign investment from 1950 to 2019. Findings highlight the pivotal role of U.S. financial uncertainty in driving global business cycles. Increased uncertainties in the U.S. financial sector negatively affect global economic activity by impeding credit and stock prices, limiting funding opportunities for firms and households worldwide. This underscores the significant influence of U.S. financial markets on global economic fluctuations.

Keywords: Macroeconomic uncertainty; Financial uncertainty; Credit markets; Funding; Global business cycles (search for similar items in EconPapers)
JEL-codes: D80 E44 F21 F44 G15 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:48:y:2024:i:3:s0939362524000025

DOI: 10.1016/j.ecosys.2024.101180

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