How much has trade policy changed globally? This column introduces the Trade Policy Activity Index, a monthly measure of policy changes across 197 economies since the Global Financial Crisis. Underlying it is a dynamic factor model that distils the common dynamics across diverse instruments and data sources. The index documents identifiable peaks coinciding with trade tensions in 2018–19 and 2025, COVID-19, and the war in Ukraine, amid a rising trend. It also shows that restrictive measures have pulled ahead of facilitating ones in recent years, with the 2025 surge extending well beyond the largest economies.Read More
