The article explores how government spending and monetary policy changes affect economic volatility. By analyzing historical data, the researchers found that uncertainty about monetary policy has a bigger impact on output and inflation volatility than other policy shocks since the mid-1980s. Specifically, a shock to monetary policy uncertainty explains 40% of output volatility and 25% of inflation volatility. In the long run, a government spending shock has a similar impact on uncertainty as a monetary policy shock, while in the short run, it has about half the impact.