The Macroeconomic Effects of Oil Price Shocks: Why are the 2000s so different from the 1970s?

By Olivier J. Blanchard, Jordi Galí. 2007

165 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/7f4cc4b2c513c2a0df306d4dce880b222187d7fe

Citations in the corpus

• HOW DOES STOCK MARKET VOLATILITY REACT TO OIL PRICE SHOCKS? (2017, unknown): “2014; Kinahan, 2014). For a more comprehensive view, which acknowledges the existence of shocks originating from both the supply and the demand side of the oil market, see The Economist (2012). 2 See Blanchard and Galí (2009) and Blinder and Rudd (2013) for the alternative view that considers the pr”
• Does the Fed Respond to Oil Price Shocks (2011, unknown): “real activity would have been much different under alternative policy scenarios, even in the late 1970s and early 1980s, despite the fact that our results pass standard tests of whether the 13 For related discussion see Blanchard and Galí (2010), Herrera and Pesavento (2009), Edelstein and Kilian (2”
• Estimating the effect of a gasoline tax on carbon emissions (2011, unknown): “See, for example, Chouinard and Perloff (2004) and Alm et al. (2009) .”
• What Drives Oil Prices? Emerging versus Developed Economies (2012, unknown): “Most recent empirical studies of the interaction between the oil market and macro economy concentrate on the impact on either one or a few developed (OECD) countries, e.g., the US in Kilian (2009) or France, Germany, Italy, Japan, the UK and the US in Blanchard and Gaĺı (2010).”
• Causality Between Energy and Output in the Long-Run (2013, unknown): “More recently, Blanchard and Galí (2008) used a VAR of GDP, oil prices, wages, and two other price indices, to argue that the effects of oil price shocks have reduced over time. Hamilton (2009a) deconstructs their arguments to show that past recessions would have been mild or have merely been slowdo”
• On the Influence of Oil Prices on Economic Activity and Other Macroeconomic and Financial Variables (2008, unknown): “According to Blanchard and Gali (2007), a plausible explanation is that the effects of an oil price increase are similar across periods, but have coincided in time with large shocks of a very different ∗ Institut français du pétrole, IFP, France.”
• Why are the 2000s so Different from the 1970s? A Structural Interpretation of Changes in the Macroeconomic Effects of Oil Prices (2009, unknown): “Using a structural VAR approach, Blanchard and Gali (2007a) (BG in what follows) estimated impulse response functions (IRFs) for the United States, both for the pre-1984 and the post-1984 periods, and concluded that the post-1984 effects of the price of oil on either output or the price level were…”
• Oil Price Shocks: Causes and Consequences (2014, unknown): “It is sometimes claimed that it should not make a difference whether a given oil price shock was caused by unexpected demand from China or by an exogenous supply disruption in the Middle East, as long as both shocks occur abroad (e.g., Blanchard and Galí 2010).”
• Instability and Nonlinearity in the Euro-Area Phillips Curve (2012, unknown): “Blanchard and Gaĺı (2007) confirm this findings and conclude that various forces have caused this decline, including improved monetary policy, more flexible labour markets and a smaller dependence on oil.”
• The effects of oil price shocks on the Iranian economy (2009, unknown): “Recently, Jimenez-Rodriguez and Sanchez (2005) assessed empirically the effects of oil price shocks on real economic activities in a sample of seven OECD countries, Norway and the Euro area as a whole.”
• Cross-Country Differences in the Effects of Oil Shocks (2012, unknown): “…in the share and role of oil in the economy are prominent arguments in the literature of time-varying effects of oil shocks (e.g. Bernanke 2006, Blanchard and Gali 2007 or Hamilton 2009).11 For the US economy, Edelstein and Kilian (2009), Herrera and Pesavento (2007) and Blanchard and Gali…”
• Crude oil and stock markets: Stability, instability, and bubbles ☆ (2009, unknown): “Blanchard and Gali (2007) find smaller effects of oil price shocks on macroeconomic variables in recent years.”
• Oil and the Great Moderation (2010, unknown): “…is that with an exogenous (or, for that matter, a perfectly competitive) oil sector, and absent any real rigidities (e.g. real wage rigidities as in Blanchard and Gali, 2007), there is no meaningful trade-o¤ between in ‡ation and output gap stabilization, implying that full price stability is…”
• Dynamic Factor Models, Factor-Augmented Vector Autoregressions, and Structural Vector Autoregressions in Macroeconomics (2016, unknown): “Subsequent work suggests, however, that since the 1980s oil shocks have had a smaller impact (eg, Hooker, 1996; Edelstein and Kilian, 2009; Blanchard and Galı́, 2010), and moreover that much of the movement in oil prices is due to demand shocks, not oil supply shocks (eg, Kilian, 2009).”