The Macroeconomic Effects of Higher Oil Prices, Issues 2001-2014
International Monetary Fund, 2001 - Erdölpreis / Mehr-Länder-Modell / Welt - 46 pages
The paper uses MULTIMOD to analyze the macroeconomic effects of oil price shocks, distinguishing between temporary, more persistent, and permanent shocks. It provides perspectives on several findings in the literature and the key role of monetary policy in influencing macroeconomic outcomes. Specific attention is paid to the channels through which oil price increases can pass through into core inflation, a possible explanation of the asymmetric relationship between oil prices and economic activity, the role of monetary policy credibility, the implications of delayed policy responses, and the relative merits of leaning in different directions when the correct policy response is uncertain.
What people are saying - Write a review
We haven't found any reviews in the usual places.
The Transmission of Oil Price Shocks in MULTIMOD
Temporary Versus Persistent Increases in Oil Prices
2 other sections not shown
Other editions - View all
0.0 Inflation Negative 50 Percent Increase base-case core inflation effects CPI inflation delayed policy response Denotes delayed policy drec Denotes delayed economic activity effects from oil effects of oil Effects on Inflation endogenous credibility estimates Euro Area exogenous Figure GDP and Inflation GDP deflator headline inflation impulse response Increase in Oil industrial countries inflation target Japan macroeconomic model with core monetary authorities monetary policy reaction MULTIMOD simulations NAIRU Negative 0.1 nominal interest rate oil price changes oil price increases oil price shocks oil shocks parameters pass-through effects pass-through into core percentage points Permanent 50 Percent Persistent 50 Percent persistent shock policy credibility policy errors Policy Interest Rate policy reaction function policymakers potential output price of oil private agents real-income catch-up effects real-wage catch-up effect relationship between oil shock minus control Short-Term Interest Rate Table Notes temporary shock U.S. Dollar United Kingdom V1ts V2adr V2drec V2ps V2ts Vlps wage/price nexus