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Uncertainty Fluctuations: Measures, Effects and Macroeconomic Policy Challenges

  • Laurent Ferrara
  • Stéphane Lhuissier
  • Fabien Tripier
Chapter
Part of the Financial and Monetary Policy Studies book series (FMPS, volume 46)

Abstract

The world economy is plagued by uncertainties of various kinds from economic policy uncertainty to financial volatility. This chapter presents the main measures for uncertainty referred to in policy debates, explains how uncertainty affects the macro-economy and draws three lessons for policy-makers facing increasing uncertainties. First, macroeconomic policies have a direct role to play in stabilizing policy-related uncertainty. Second, financial uncertainty should be constrained through financial regulation. Third, the effectiveness of economic stabilization policies depends on the state of uncertainty and should be adapted accordingly.

Keywords

Uncertainty Measurement Macroeconomic impact Economic policy 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Laurent Ferrara
    • 1
  • Stéphane Lhuissier
    • 1
  • Fabien Tripier
    • 2
  1. 1.Banque de FranceParisFrance
  2. 2.Université Paris-Saclay (EPEE, Univ Evry) & CEPIIParisFrance

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