World Crude Oil Markets: Monetary Policy and the Recent Oil Shock
This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilities and producers'' market power. Exchange and interest rates do influence o...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2006
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Schriftenreihe: | IMF Working Papers
Working Paper No. 06/62 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilities and producers'' market power. Exchange and interest rates do influence oil market equilibrium. The relationship between oil prices and interest rates is a two-way relationship that depends on the type of oil shock. During a supply shock, rising oil prices caused interest rates to increase; whereas during a demand shock, falling interest rates caused oil prices to rise. Record low interest rates led to high oil price volatility in 2005. Data shows that world economic growth and price stability require stable oil markets and therefore more prudent monetary policies |
Beschreibung: | 1 Online-Ressource (27 p) |
ISBN: | 1451863225 9781451863222 |
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spelling | Krichene, Noureddine Verfasser aut World Crude Oil Markets Monetary Policy and the Recent Oil Shock Krichene, Noureddine Washington, D.C International Monetary Fund 2006 1 Online-Ressource (27 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 06/62 This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilities and producers'' market power. Exchange and interest rates do influence oil market equilibrium. The relationship between oil prices and interest rates is a two-way relationship that depends on the type of oil shock. During a supply shock, rising oil prices caused interest rates to increase; whereas during a demand shock, falling interest rates caused oil prices to rise. Record low interest rates led to high oil price volatility in 2005. Data shows that world economic growth and price stability require stable oil markets and therefore more prudent monetary policies Online-Ausg http://elibrary.imf.org/view/IMF001/07974-9781451863222/07974-9781451863222/07974-9781451863222.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Krichene, Noureddine World Crude Oil Markets Monetary Policy and the Recent Oil Shock |
title | World Crude Oil Markets Monetary Policy and the Recent Oil Shock |
title_auth | World Crude Oil Markets Monetary Policy and the Recent Oil Shock |
title_exact_search | World Crude Oil Markets Monetary Policy and the Recent Oil Shock |
title_exact_search_txtP | World Crude Oil Markets Monetary Policy and the Recent Oil Shock |
title_full | World Crude Oil Markets Monetary Policy and the Recent Oil Shock Krichene, Noureddine |
title_fullStr | World Crude Oil Markets Monetary Policy and the Recent Oil Shock Krichene, Noureddine |
title_full_unstemmed | World Crude Oil Markets Monetary Policy and the Recent Oil Shock Krichene, Noureddine |
title_short | World Crude Oil Markets |
title_sort | world crude oil markets monetary policy and the recent oil shock |
title_sub | Monetary Policy and the Recent Oil Shock |
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