Do Oil Price Shocks and COVID-19 Lead to Policy Uncertainty?

Updata:01-01-1970

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DOI: https://doi.org/10.30564/mmpp.v4i2.4843

Abstract:

This study examines the asymmetric effects of the structural oil price shocks and COVID-19 pandemic on four uncertainty indexes. The author used the SVAR approach for the period 31-Dec-2019 to 28-Jun-2020. The results indicate that the effects are asymmetric of oil price shocks. The author also finds that COVID-19 shocks lead to positive responses to the economic policy uncertainty index. In addition, oil prices (their shocks) have a negative impact on the four indicators of uncertainty. Consequently, governments should actively take effective measures to prevent crude oil prices from shocking and maintain stable economic policies.

References:

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