The macro-financial impact of economic policy uncertainty in Latin America

by Ana Aguilar, Rafael Guerra, Carola Müller, Alexandre Tombini<br />This paper investigates the impact of domestic economic policy uncertainty (EPU) on macroeconomic and financial variables in emerging market economies, focusing on Latin America. Using a panel dataset for Brazil, Chile, Colombia and Mexico from 2005 to early 2025, we find that domestic EPU shocks cause significant macroeconomic disruptions, le…