Revista Internacional de Economia e Ciências de Gestão

The Effect of Economic Policy Uncertainty on Sustainable Business

Abstract

Bangzhu Zhu

Policy shifts are inevitable and can strike out of the blue. Uncertainty is the driving force behind numerous modifications to individual and organizational decisions. It is possible to refer to political, social, economic, or both rules in order to catch recent events or anticipate dynamic advancement. The stock market can be shaken by dynamism, which occasionally produces uncertainty. Stock market correlations and volatility will occur when the government announces several policy changes and creates a great deal of uncertainty. Baker developed the Economic Policy Uncertainty (EPU) index by using a variety of variables as a proxy for the uncertainty of economic policy changes. They discovered that both microeconomic and macroeconomic parameters are significantly influenced by the EPU.