Summary of Measuring Geopolitical Risk

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Measuring Geopolitical Risk summary


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Business leaders, investors and monetary officials consider a variety of factors when developing their strategies. But it is geopolitical risk (GPR) that presents the greatest concern for these stakeholders, and a lack of measurement capacity and accuracy can stymie investment and trade. Economists Dario Caldara and Matteo Iacoviello have built an index that assesses the levels of GPR over time and explains how these perceived risks affect business and government decision making. getAbstract recommends this substantive report to executives, investors and policy experts for its detailed examination of a strategically significant hazard.

In this summary, you will learn

  • What constitutes geopolitical risk (GPR),
  • How defining and measuring GPR can help decision makers, and
  • What effects GPR has on the US and global economies.

About the Authors

Dario Caldara and Matteo Iacoviello are economists with the Board of Governors of the Federal Reserve System.



Geopolitical risk (GPR) is a primary component of public and private sector strategies. A 2017 Gallup survey indicated that 75% of investors see GPR as an even greater concern than “political and economic uncertainty.” However, researchers have not yet been able to comprehensively analyze the impacts of GPR on an economy. 

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