US uncertainty shocks have global impact, influenced by financial market conditions.
The study looked at how uncertainty in the US affects other countries' economies. They used a big model with data from 33 countries to see how global financial trends influence this relationship. The results show that when the US is uncertain, it can hurt other countries' economies more during tough times in the global financial cycle. But when things are going well globally, the impact is not as big. This means that how countries respond to US uncertainty should depend on the overall state of the global financial markets.