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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 …
Persistent link: https://www.econbiz.de/10013153361
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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Beginning in 2009, in many advanced economies, policy rates reached their zero lower bound (ZLB). Almost at the same time, oil prices started rising again. We analyze how the ZLB affects the propagation of oil shocks. As these shocks move inflation and output in opposite directions, their...
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The global oil dynamics has significant implications for both oil exporting and importing small open economies. However, much of the literature on oil shocks is oriented towards advanced oil-importing economies. Micro-founded studies that explore the effects of oil shocks from the standpoint of...
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We identify structural vector autoregressions using narrative sign restrictions. Narrative sign restrictions constrain the structural shocks and the historical decomposition around key historical events, ensuring that they agree with the established narrative account of these episodes. Using...
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