This Time is Global: Synchronisation in Economic Policy Uncertainty Indices

Carlos A. Medel ()

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: This note decomposes Economic Policy Uncertainty (EPU) indices for 28 countries into domestic and global components, using state-space estimates to evaluate the recent influence of the global factor, particularly that originating from the US. The findings show that, in most countries, the global component has contributed more to overall EPU levels since late 2024 than during the 2007-08 Global Financial Crisis or the Covid-19 pandemic. Additionally, global synchronisation has reached record levels, as indicated by mean phase coherence, while multivariate wavelet coherence confirms alignment across both high- and low-frequency cycles. These results suggest a subdued global outlook, as a reversal of trade-restrictive policies is unlikely to restore prior economic conditions.

Date: 2025-08
New Economics Papers: this item is included in nep-ifn
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/Doc ... 617e?t=1756910470167 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:1052

Access Statistics for this paper

More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Sebastian Antinao ().