The Global Policy Uncertainty Index, 1997 to 2025
A 28-year time series of the Baker-Bloom-Davis Economic Policy Uncertainty Index, with six major shocks and the 2025 spike to 428.9.
A 3:50 animated walk through the Global Economic Policy Uncertainty (EPU) Index from 1997 to 2025, built on the Baker, Bloom, and Davis (2016) news-coverage methodology. Targeted at finance students and macro analysts who need a grounded sense of how policy shocks have moved through the post-Asian-crisis era.
The lesson marks six major shocks on the time series: the 1998 Asian financial crisis, the 2001 dot-com bust and September 11 attacks, the 2008 Global Financial Crisis, the 2016 Brexit referendum and US election, the 2020 COVID-19 pandemic, and the 2025 tariff and geopolitical spike that pushed the index to 428.9 — its highest reading on record.
Understanding the EPU index is foundational for any work in hedging, risk transfer, or asset allocation under uncertainty. The video sets up that context without overstating any single estimate.