This paper, using alternative case studies and analytical frameworks, delves into the intricate relationship between stability and economic policy uncertainty amidst quick technological progress. At different levels of analysis, it probes the impact of economic uncertainty on phenomena, such as social strife, policy immobility, and populism movements, especially regarding how these issues are augmented or mitigated by technology and digitalization. The general trends and specific contextual determinants are laid out for interaction among these two drivers of change, with examples ranging from Brazil to the United States and the United Kingdom. Other considerations that shape the relationship between these two factors are untangled in the form of more regional-specific drivers. In addition, the combination of digital tools and data analytics in making economic policies are pointed out as a way to reduce uncertainty and highlight things previously unseen. Such information supports the case that measures that work need to be put in place to prevent economic uncertainty with the ability to respond to global governance challenges and create stability when turbulence rules the day. Greater knowledge of these mechanisms, including how technology can promote communication and decision-making, allows policymakers to conceive of suitable policies and programs for managing economic uncertainty. Hence, stability for politics and the assurance of development in a world that is much more interconnected and digital are preserved.

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The Impact of Economic Policy Uncertainty on Stability in the Digital Age: A Cross-Country Analysis

  • Aref A. Murshed,
  • Alalddin Al-Tarawneh

摘要

This paper, using alternative case studies and analytical frameworks, delves into the intricate relationship between stability and economic policy uncertainty amidst quick technological progress. At different levels of analysis, it probes the impact of economic uncertainty on phenomena, such as social strife, policy immobility, and populism movements, especially regarding how these issues are augmented or mitigated by technology and digitalization. The general trends and specific contextual determinants are laid out for interaction among these two drivers of change, with examples ranging from Brazil to the United States and the United Kingdom. Other considerations that shape the relationship between these two factors are untangled in the form of more regional-specific drivers. In addition, the combination of digital tools and data analytics in making economic policies are pointed out as a way to reduce uncertainty and highlight things previously unseen. Such information supports the case that measures that work need to be put in place to prevent economic uncertainty with the ability to respond to global governance challenges and create stability when turbulence rules the day. Greater knowledge of these mechanisms, including how technology can promote communication and decision-making, allows policymakers to conceive of suitable policies and programs for managing economic uncertainty. Hence, stability for politics and the assurance of development in a world that is much more interconnected and digital are preserved.