Arbeitspapier

Monetary Policy Dynamics in Large Oil-Dependent Economies

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.

Language
Englisch

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

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

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

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Wohltmann, Hans-Werner
  • Winkler, Roland C.
  • Kiel University, Department of Economics

Time of origin

  • 2005

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