UK Measured Economic Policy Uncertainty in Context

In some ways, policy uncertainty — at least as measured using text — is not as bad as I would’ve thought. Here’s the Baker-Bloom-Davis index:

Figure 1: UK Economic Policy Uncertainty (blue), and centered 7 day moving average (red). ECRI defined recession dates shaded gray. Source:, ECRI and author’s calculations.

The 9/27 value of 732 is way below the Brexit referendum value of 2661. On the other hand…tomorrow is another day!