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The paper presents a theory of nominal asset prices for competitively owned oil. Focusing on monetary effects, with … nominal oil price that are used to illustrate the theory of oil price jumps. The evidence also indicates strong Granger … causality of the oil price by US inflation as is consistent with the theory …
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In 2000 and 2001 Russia faced a puzzle: high world oil prices, while ensuring GDP growth and strong fiscal balance, generated serious problems for domestic monetary and exchange rate policies. The Central Bank was forced to buy excess foreign exchange supply on the market, thereby paving the way...
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