destabilize oil prices in recent years. We define a destabilizing financial shock as a shift in oil prices that is not related to … identified with sign restrictions, we disentangle this non-fundamental financial shock from fundamental shocks to oil supply and … demand to determine their relative importance. We find that financial investors in the futures market can destabilize oil …

output, inflation, the monetary policy rate, bank loans and bank lending spreads. The credit supply shock extracted with sign …

both equities and bonds. Yet such a monetary policy easing shock also induces a shift in portfolio composition out of …

. We find that a contractionary oil price shock has a negative effect on the current account which lasts for approximately …

shock. We also find that the bulk of fiscal adjustment takes place via a rise in government revenue rather than a cut in …-to-GDP ratio from rising as a consequence of the shock. Sub-dividing our sample, we also find that for countries participating in … Economic and Monetary Union (EMU) the primary balance response to a cost of borrowing shock was stronger in the period after …

demand and supply shocks. The results show that higher macroeconomic uncertainty, as measured by higher world industrial … elasticity of oil demand and supply in the uncertain regime, or in other words, that both oil curves become steeper when … uncertainty is high. The difference in oil demand elasticities is both statistically and economically meaningful. Accordingly …