The impressive growth of many African economies during the past decade was highly dependent on booming commodity markets and strong capital inflows, often related to commodities. With commodity prices falling and market expectations pointing to little reversal in the foreseeable future,...

We assess the transmission of monetary policy shocks on oil prices using a VAR model. We identify monetary policy and financial activity shocks disentangled from demand and oil supply shocks using sign restrictions. We obtain the following main findings. (i) Monetary policy and financial...

1 Introductory Remarks: What’s behind the Recent Oil Price Drop? Naoyuki Yoshino and Farhad Taghizadeh-Hesary -- 2 Impact of Expansionary Monetary Policy on Crude Oil Prices Farhad Taghizadeh-Hesary and Naoyuki Yoshino -- 3 Which Side of the Economy Is Affected More by Oil Prices: Supply or...

While oil price fluctuations in the past can be explained by pure supply factors, this book argues that it is monetary policy that plays a significant role in setting global oil prices. It is a key factor often neglected in much of the earlier literature on the determinants of asset prices,...