Working Paper presents research work by both Danmarks Nationalbank’s employees and our partners. The series is primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.
Working Paper: Uncertainty and the real economy: Evidence from Denmark
The language in news articles can be used to measure the perceived level of economic uncertainty. In a model of the Danish economy, increased uncertainty contributed significantly to the drop in investments during the Sovereign Debt Crisis. So far, uncertainty has had a smaller impact on investments during the COVID-19 pandemic.