Mumtaz, Haroon; Pirzada, Ahmed; Theodoridis, Konstantinos - 2018
find that an adverse oil supply shock has a negative effect on stock prices when oil inflation is low. In contrast, this … impact is negligible in the regime characterised by higher oil price inflation. Using a simple DSGE model, we suggest that … the explanation for this result may be tied to the behaviour of credit spreads. When oil inflation is low, lower policy …