This has policy implications for economic policy and in particular fiscal policy management. The motivation for this study is to examine the effect of oil price shock on fiscal policy in the country. Using structural vector autoregression (SVAR) methodology, the effects of crude oil price ...
1 presents the impulse responses of NEER, Euribor, oil, and stock prices from a one standard deviation shock to oil prices. As in the previous analysis, the euro exchange rate is negatively affected by a positive oil price shock. Based on one standard deviation error bands (dotted line) ...
A shock to energy prices could directly affect energy-intensive sectors, such as aviation and shipping. The impact in energy-intensive sectors could be reflected in margin erosion—though some firms may be able to pass these costs onto the consumer by increasing the final pr...
This finding confirms, therefore, that oil price shock may not be necessarily inflationary especially, in the case of an open developing economy like Nigeria. The policy implication of this is that fiscal policy can be used more effectively to stabilise the domestic economy after an oil shock. ...
Section 6 focuses on the oil price shock and fiscal policy interactions. Section 7 concludes. Details of the algorithm designed to implement the test for symmetry are set out in Online Appendix A. Our robustness checks are also appended to the paper. 2. Related literature There are two ...
In the first, effects of the 1979–1985 oil price shock are found in absence of any fiscal policy changes. The outcome for the Norwegian economy is clearly negative, with the main impetus stemming from foreign trade. Since the Norwegian government retain almost the entire oil rent (revenues ...
Given the significant oil price changes during the past two decades, this paper examines the effect of oil price uncertainty on the sovereign credit risk of four Gulf Cooperation Council (GCC) countries (United Arab Emirates, Qatar, Bahrain, and Saudi Arabia). By utilizing the nonparametric local...
Although the comparison was enhanced by a weak May 2022 as a result of COVID-19 restrictions, the total of 62.0m tonnes was the second highest monthly total on record. Updated on 16 June 2023 On this topic page we analyse the impact of coronavir...
However, the country is looking unlikely to make up the supply shock as it suffers from a labor shortage. Output growth in Malaysia slumped to a five-year low last year as palm oil companies struggled to find enough foreign workers for harvesting jobs, which...
As oil and exchange rates co-move, oil price shocks are more likely to move interest rates, independently of whether the country is an importer or exporter of oil. Extreme co-movements or tail dependence, on the other hand, means that the market risk of an oil price shock faced by an ...