The macroeconomic effects of oil shocks

Description

"We characterize the macroeconomic performance of a set of industrialized economies in the aftermath of the oil price shocks of the 1970s and of the last decade, focusing on the differences across episodes. We examine four different hypotheses for the mild effects on inflation and economic activity of the recent increase in the price of oil: (a) good luck (i.e. lack of concurrent adverse shocks), (b) smaller share of oil in production, (c) more flexible labor markets, and (d) improvements in monetary policy. We conclude that all four have played an important role"--National Bureau of Economic Research web site.

Subjects

Series Statement

• NBER working paper series -- working paper 13368
• Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13368.

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