Trade policy was cited in 26% of news stories about market volatility last year. That may not seem super high... but consider it was 2.7% from 1985 to 2015.
The study, by the University of Chicago’s Steven Davis, was circulated by the National Bureau of Economic Research and dovetails with a recent Federal Reserve publication.
Trade policy has become both more uncertain and more protectionist under the Trump presidency, Davis writes, and it has “a capricious, back-and-forth character that amplifies uncertainty and undermines a rules-based trading order.” ‘[T]rade policy went from a virtual nonfactor in U.S. equity-market volatility in recent decades to one of its leading sources in 2018.’ Steven Davis, University of Chicago That uncertainty undermines the economy “by leading firms to delay or [forgo] investments and hiring, by slowing productivity-enhancing factor reallocation, and by depressing consumption expenditures.”
Uncertainty about trade policy in 2018 only may have lowered aggregate U.S. investment by more than 1%, the Fed said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump’s Trade War Inflicts Pain On Manufacturing StatesPresident Trump’s trade war is taking a toll on the economy, especially in manufacturing states. Employment growth has slowed more in manufacturing states than in non-manufacturing states with many manufacturing states already seeing declining total jobs numbers.
Read more »
Trump's other trade war could hit European cheeses and olive oilThe Trump administration has proposed a tariff of up to 100% on $25 billion in European items. Romano, Parmesan, provolone and Gouda are all on the list. But it's not just cheese
Read more »
The Fair-Trade, Direct-To-Consumer Spice Companies You Should KnowYou buy fair trade coffee. Now it's time to do the same with spices.
Read more »
Trade War Pushes Garment Companies Back to BangladeshThe trade war between the U.S. and China has led many fashion brands to shift production to spots across Asia, including to Bangladesh, where safety issues persist years after two workplace accidents killed more than 1,000 workers.
Read more »
Bad news for parents: Trump’s trade war with China will hit back-to-school suppliesSome of the standard student gear and supplies are on the list.
Read more »