The Economic Policy Uncertainty Index, created by US-based economists Scott Baker, Nick Bloom, and Steven Davis, measures the frequency of articles featuring words such as ‘economics’, ‘policy’, and ‘uncertainty’ across eight major Australian newspapers. The creators have shown that past bouts of uncertainty have foreshadowed declines in investment, employment and GDP.
The Economic Policy Uncertainty Index for Australia rose sharply in March to levels higher than during the Global Financial Crisis. The index fell a little but remains well above pre-COVID-19 levels.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
