Many commentators argue that uncertainty about taxes, government spending and other policy matters deepened the recession of 2007-2009 and slowed the recovery. To investigate this issue we develop a new index of policy-related economic uncertainty and estimate its dynamic relationship to output, investment and employment.

Tension between the United States and Iran reached levels not seen in more than 20 years when, on Wednesday, Iranian military officials threatened to close the Strait of Hormuz, the 34-mile wide channel through which more than one-third of the world’s oil tanker traffic passes. 

Lachman pushes for a floating exchange rate in theGulf countries.

Tensions in the Strait of Hormuz are at a more than 20-year high after Iranian authorities threatened to close the 34-mile-wide channel through which more than one-third of the world's oil tanker traffic passes.

Inflation could climb to double digits, as it was in the early 1980s.

The Federal Reservemay have to address inflation sooner than it would like in order to avoid reliving the economic problems of the early eighties.

The Obama administration seems to be doing too little too late in resolving the country's banking crisis.

High gas prices are inducing consumers to tighten their belts and politicians to call for taxes on oil companies. This Outlook explores the true causes of oil price fluctuation and explains how policymakers can help lower gasoline prices.