Economic Policy Uncertainty, Political Uncertainty and the Greek Economic Crisis Gikas A. Hardouvelis* Georgios I. Karalas** Dimitrios I. Karanastasis* Panagiotis K. Samartzis* Second draft: May 1, 2018 * University of Piraeus ** London School of Economics This is a revised draft of earlier SSRN version # 3155172. We would like to thank George Bitros, Nicholas Bloom, Steven Davis, Tasos Giannitsis, Theodore Stamatiou, Christopher Stefanadis, and Stephen Terry for helpful comments on the earlier draft. Gikas A. Hardouvelis: Department of Banking and Financial Management, University of Piraeus, 80 Karaoli & Demetriou Street, Piraeus 18534, Greece and CEPR. Email:
[email protected]. Georgios I. Karalas: Department of Finance, London School of Economics, London WC2A 2AE, UK. Email:
[email protected]. Dimitrios I. Karanastasis: Department of Banking and Financial Management, University of Piraeus, 80 Karaoli & Demetriou Street, Piraeus 18534, Greece. Email:
[email protected]. Panagiotis K. Samartzis: Department of Banking and Financial Management, University of Piraeus, 80 Karaoli & Demetriou Street, Piraeus 18534, Greece. Email:
[email protected]. 1 Economic Policy Uncertainty, Political Uncertainty and the Greek Economic Crisis May 1, 2018 Abstract We use textual analysis to construct an index of economic policy uncertainty (EPU) for Greece from 1998 to 2017, similar to other international EPU indices. We also construct indices of political uncertainty (POLU) and economic uncertainty (EU), plus EPU sub-indices related to fiscal policy (EPUF, partitioned into debt EPUD and tax EPUT)), monetary policy (EPUM), banking (EPUB), currency or Grexit possibility (EPUC), and pension policy (EPUP). The indices are positively correlated yet retain substantial idiosyncratic variability. With the exception of EPUM, they all rose during the international and subsequent Greek crises.