Oil price shocks and the macroeconomy
By P. Segal. 2011
120 citations recorded by the source corpus.
This paper examines the impact of oil price shocks and attempts to explain why the rise in oil prices up to 2008 had little impact on the world economy. It makes three main arguments. First, that oil prices have never been as important as is popularly thought. Second, that the most important route through which oil prices affect output is monetary policy: when oil prices pass through to core inflation, monetary authorities raise interest rates, slowing growth. Based on the second argument, the third argument is that high oil prices have not reduced growth in recent years because they no longer pass through to core inflation, so the monetary tightening previously seen in response to high oil prices is absent. It also argues that oil prices had little impact on the global recession of 2008--9. Copyright 2011, Oxford University Press.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/dd59b3a49ac27620fa71a9da9332631836103b7e
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- George Filis
- D. Broadstock
- John Foster
- Colin Brown
- Wagner Liam
- L. Molyneaux
- Stavros Degiannakis *
- Vipin Arora
In Renewable Energy, Sustainability and the Environment
- George Filis
- D. Broadstock
- John Foster
- Colin Brown
- Wagner Liam
- L. Molyneaux
- Stavros Degiannakis *
- Yue‐Jun Zhang
Citations in the corpus
- Oil price shocks and stock market returns: New evidence from the United States and China (2014, background): “…a significant impact on economic variables (some influential papers include, inter alia, Baumeister and Peersman, 2012; Lippi and Nobili, 2012; Segal, 2011; Rahman and Serletis, 2011; Tang et al., 2010; Jbir and Zouari-Ghorbel, 2009; Nakov and Pescatori, 2009; Blanchard and Gali, 2007;…”
- Oil and stock returns: Evidence from European industrial sector indices in a time-varying environment (2013, unknown): “…There are two views on the role of oil prices to the economy: (1) the microeconomic view (e.g. effects of oil prices on pricing and production), and (2) the macroeconomic view (impact of oil prices on aggregate demand through, for example, inflation - monetary policy responses), see Segal (2011).”
- Measuring resilience in energy systems: insights from a range of disciplines (2016, background): “Many researchers have concluded that recessionary movements of GDP are considered to be attributable to oil price shocks rather than the consequences of monetary policy [2].”
- EROI of different fuels and the implications for society (2014, unknown): “The ratio of the monetary cost of energy compared to the GDP generated for the same year gives a quantitative index of how much money is invested in energy on average to generate a unit of wealth.”