Policy uncertainty in Scandinavian countries

We measure policy uncertainty for three small open economies and show how indices can capture important historical events, both local events such as referendums certain general elections, well global financial crises. By employing the methodology of Baker et al. (2016), we construct Scandinavian countries: Norway, Denmark Sweden. find that increased at home in world’s largest economy, US, leads to economic contraction, including a significant decline stock markets GDP long-lasting reduction countries’ Purchasing Managers’ Index.