The Synchronization of Economic Policy Uncertainty among the G20 Countries
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According to the CM synchronization index created by Cerqueira and Martins(2009), this paper measures the synchronization of economic policy uncertainty(EPU) among G20 countries. The results show that the synchronization of EPU among the developed countries is the highest, the synchronization of EPU between the developed and developing is lower, and the synchronization of EPU among the developing countries is the lowest; the EPU synchronization between America and the other developed countries is higher than that with the developing, while China goes the opposite way before 2011, but gets in line with the situation of America after 2011. In addition, the synchronization between America and China is high except when international events break out. Therefore this paper suggests that when major international events happen, all the countries should cooperate in policy-making so as to maintain the global EPU; the developed should live up to their responsibilities and do not make policies which harm the interest of the developing; and the developing should act positively to carry out policies, should cooperate with the developed to achieve a better situation in the global stage.
Economic policy uncertainty, Cm synchronization index, The g20 countries