This paper studies how monetary policy should optimally respond to an oil discovery.Oil discoveries provide news that …-looking inflation and a recession. To illustrate this I incorporate a government,oil and news into a standard DSGE model of a small open … stagflation in the 1980s after North Sea Oil began production. …

We use variation in oil output among Brazilian municipalities to investigate the effects of resource windfalls. We find … muted effects of oil through market channels: offshore oil has no effect on municipal non-oil GDP or its composition, while … onshore oil has only modest effects on non-oil GDP composition. However, oil abundance causes municipal revenues and reported …

This paper explores an oil discovery natural experiment to assess the role of natural resources in determining … corruption. We argue that an anticipated oil boom may increase corruption by boosting the value attributed by an elite to being … in power when the actual oil exploration begins. We test this proposition by analyzing the impact of the oil discovery …

Monetary policy can play an important role in managing oil discoveries. Ideally governments will use fiscal policy to … smooth consumption of oil income. In practice this often does not happen, as governments delay spending until oil revenues … how monetary policy should respond. The paper makes three contributions. The first is to show that an oil discovery causes …

This paper studies how monetary policy should respond to news about an oil discovery, using a workhorse New Keynesian … oil revenues by appreciating the terms of trade, creating “Dutch disease” and a deflationary bias which is overcome by …

This paper studies how monetary policy should respond to news about an oil discovery, using a workhorse New Keynesian … oil revenues by appreciating the terms of trade, creating “Dutch disease” and a deflationary bias which is overcome by …

This paper studies how monetary policy should respond to news about an oil discovery, using a workhorse New Keynesian … oil revenues by appreciating the terms of trade, creating “Dutch disease” and a deflationary bias which is overcome by …

apply to capital-scare countries; iv) Finance consumption and investment with oil; v) Use a temporary Parking Fund to …