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Uncertainty and the United States’ election effect on the economy: some thoughts and empirical illustrations

Fredj Jawadi and Zied Ftiti ()

Applied Economics Letters, 2017, vol. 24, issue 20, 1472-1475

Abstract: This study discusses the general impact of Donald Trump’s election on the US and European economies as well as the effect of this political news on financial markets. To this end, we discuss different hypotheses from a theoretical view and empirically illustrate these thoughts when possible. Our analysis suggests that while the expected Trump measures might boost the US economy in the short term, these actions would have negative long-term consequences in the United States. Further, this new US policy will affect European economies and destabilize financial markets while increasing uncertainty, which could constrain growth and increase the downside risk.

Date: 2017
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DOI: 10.1080/13504851.2017.1284983

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