Monetary Policy Dynamics in Large Oil-Dependent Economies

Arbeitspapier

The paper analyzes the impacts of anticipated and unanticipated monetary policies on two large open economies that are dependent upon raw materials imports from a small third country. The analysis is based on asymmetric behavior on the supply side of both economies and an endogenous commodity pricing equation of Phillips' curve type. It is shown that an increase in the growth rate of domestic money supply is not neutral in the long run but induces contractionary output effects in both economies. The paper also discusses the impacts of monetary policy rules that either reduce the inflationary or contractionary output effects of commodity price shocks.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Working Paper ; No. 2005-17

Classification and Topics

• Classification: Wirtschaft ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; International Policy Coordination and Transmission ; Energy and the Macroeconomy
• Subject: Monetary Policy ; Oil Price Shocks ; International Policy Coordination ; Geldpolitik ; Offene Volkswirtschaft ; Zwei-Länder-Modell ; Mineralölpreisschock ; Internationale wirtschaftspolitische Koordination ; Theorie ; Dynamisches Modell ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wohltmann, Hans-Werner ; Winkler, Roland C.
• Event: Veröffentlichung
• (who): Kiel University, Department of Economics
• (where): Kiel
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/22003
• Last update: 10.03.2025, 11:41 AM CET