Briefing
Partisan Conflict in the U.S. and Potential Impacts on the Economy
Azzimonti-Renzo, Marina (2023-06)
Partisan conflict is not new, either in American politics or elsewhere. For economists, politics per se is not of central interest, but its implications for economic activity are. The more specific step we take in this article is to relay how partisan legislative disagreement has evolved and how that may affect the economy. Of particular interest are the effects on how businesses delay hiring and investment when facing high policy uncertainty. We will focus on fiscal policy since it, unlike monetary policy, must be negotiated in legislative settings. We will also concentrate attention here on ...
Richmond Fed Economic Brief , Volume 23 , Issue 20