Business Uncertainty Eases as Washington Gets Back to Work
Posted at 6:54 a.m. on March 18, 2014
Business uncertainty about economic policy — which surged according to one measure after the 2007-2009 recession — is at its lowest level.
WSJ: “The reason is twofold: Years of gyrating policy in Washington are giving way to comparative calm. And companies are becoming more nimble, using real-time data to maintain a close watch on their operations to adjust quickly to a volatile world.”
“Recent budget deals as well as distance from last year’s spending cuts and government shutdown have sharply diminished the fear of more curveballs from Washington, even as wild cards—like the political turmoil in Ukraine—persist.”
“‘Overall, policy uncertainty has dropped down to normal levels, and this is a key factor helping to restart growth in the U.S. and Europe,’ said Nicholas Bloom, an economist at Stanford University, and a creator of the uncertainty index.”