Fiore, Fiorella de; Lombardo, Giovenni; Stebunovs, Viktors - Society for Computational Economics - SCE - 2006
Sudden and protracted oil-price increases are generally accompanied by economic contractions and high inflation. How should monetary policy react to oil-price shocks in order to minimize such adverse macroeconomic effects? We build a DSGE model characterized by two oil-importing countries and...