Uncertainties, exchange rate shocks and industrial production in europe: Empirical research

This study offers an in-depth investigation of the interaction effects of oil price uncertainty, economic policy uncertainty, and exchange rate shocks on industrial production for Norway, Russia, Türkiye, and United Kingdom (UK). The findings reveal uncertainty in economic policy and oil prices had a negative interaction effect that makes the commercial ecosystem much less predictable and increases their detrimental effects on industrial production. In addition, volatile foreign exchange market exacerbates the unfavorable effects of erratic oil prices on industrial production, according to a negative interaction effect between oil price uncertainty and a foreign exchange shock. Co-ordinated monetary policies possibly will curtail unceratinties and its adverse economic fallout. Adapting to global economic shifts while maintaining robust frameworks centred on diversification and risk management offers a far more proactive policy approach to industrial production resilience. This research adds great value to policies that mitigate decline in industrial output from external shocks in European economies.