oilmarketsandtheglobaleconomy.Thepurposeofthissurveyistosummarizethesedevelopments. Section2reviewstheleadingexplanationsofoilpricefluctuations.Section3discusseseconomic theoriesofthetransmissionofoilpriceshocks,carefullydistinguishingbetweenthedirecteffectsofan exogenousoilpriceshockandtheindirecteffectsthatmaygiverisetoasymmetri...
This paper examines the macroeconomic effects of an adverse oil price shock under different exchange rate and fiscal policy arrangements in 40 oil-exportin
Our understanding of the sources of oil price fluctuations and their effects on the U.S. economy has undergone important transformations in the last decades. First, several studies have demonstrated the importance of identifying the causes of oil price fluctuations, whether they are driven by demand...
It is important to note that the effect is contemporaneous; i.e., an oil price shock will affect the euro exchange rate in the period of the shock and not with a lag. The NEER-oil price relationship supports the view that currency fluctuations and uncertainty can be reduced when world ...
in part because energy expenditures had become a smaller part of their budget than they had been in the late 1970s. But as the price of oil rose over the decade, energy expenditures returned to a position of importance in consumer budgets. I’m persuaded that theoil price shock of 2007-...
The backdrop against which an oil price shock is occurring is not as severe as it was in 2008-09 when global deleveraging was commencing as jobs were being rapidly destroyed. But the effects of an oil shock on the economy are likely to be greater than the long-run average estimated effect...
Specifically, using a new Keynesian small open economy model, we analyse the effects of an increase in the price of oil caused by an oil supply shock and an oil demand shock. Our results indicate that the effects of an oil demand shock and an oil supply shock on the small open economy ...
Data for: Effects of oil price shocks on the stock market performance: Do nature of shocks and economies matter? Abstract of associated article: The main focus of this study is to examine how oil price fluctuations influence the performance of stock markets. This study used the causality appro...
This paper analyses the impact of transmission of international oil prices and domestic oil price pass-through policy on major macroeconomic variables in India with the help of a macroeconomic policy simulation model. Three major channels of transmission of oil price shock viz. import channel, price...
In contrast, negative shocks show long-term causal effects, which emphasises the vulnerability of the banking sector to oil price fluctuations. Geopolitical risk has a significant long-term impact on the MCGDP due to uncertainty shocks caused by regional and global geopolitical measures. For ...