Bjørnland, Hilde C. - 2017
We analyze the role of oil price volatility in reducing U.S. macroeconomic instability. Using a Markov Switching … volatility of macroeconomic variables. We find that smaller or fewer oil price shocks did not play a major role in explaining the … Great Moderation. Instead oil price shocks are recurrent sources of economic fluctuations. The most important factor …