Dynamic Effects of Raw Materials Price Shocks for Large Oil-Dependent Economies

Arbeitspapier

The paper analyzes the dynamic effects of anticipated price increases of imported raw materials upon two large open economies. It is assumed that the economies have an asymmetric macroeconomic structure on the supply side and are dependent upon a small third country for oil or raw materials imports. The dynamic behavior of several macroeconomic variables is discussed under alternative scenarios. We first assume that oil is priced in dollars. Thereafter, we investigate the impacts of oil price shocks on the domestic and the foreign economy if oil imports are denominated in terms of domestic currency (Euro) rather than US dollars. It is shown that with domestic- currency denominated oil the stagflationary effects of oil price increases upon both the domestic and foreign economy are reduced. The paper also discusses several monetary policy responses to oil price shocks.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economics Working Paper ; No. 2005-01

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Energy and the Macroeconomy ; Open Economy Macroeconomics ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
• Thema: oil price shocks ; international policy coordination ; time inconsistency ; currency denomination ; Mineralölpreisschock ; Zwei-Länder-Modell ; Konjunkturzusammenhang ; Zeitkonsistenz ; Internationale wirtschaftspolitische Koordination ; Währungsumrechnung ; Makroökonomischer Einfluss ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Wohltmann, Hans-Werner ; Winkler, Roland C.
• Ereignis: Veröffentlichung
• (wer): Kiel University, Department of Economics
• (wo): Kiel
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/21990
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ