Internationale Zeitschrift für Wirtschafts- und Managementwissenschaften

The Impact of Uncertainty in Economic Policy on Sustainable Investment

Abstract

Bangzhu Zhu

Changes in policy are inevitable and may occur suddenly. Numerous alterations to individual and organisational decisions are driven by uncertainty. For the purpose of catching recent events or predicting dynamic advancement, political, social, economic, or both rules may be referred to. Uncertainty may occasionally result from dynamism, which can jolt the stock market. When the government announces several policy changes and creates a great deal of uncertainty, it will result in stock market volatility and correlations. The Economic Policy Uncertainty (EPU) index was created by Baker utilising a variety of variables as a proxy for the uncertainty in changes to economic policy. They discovered that the EPU has a considerable influence on both micro and macroeconomic parameters.