World Crude Oil Markets : Monetary Policy and the Recent Oil Shock / Noureddine Krichene.

Format:

Book

Government document

Author/Creator:

Krichene, Noureddine.

Contributor:

International Monetary Fund. African Department.

Series:

IMF Working Papers; Working Paper ; No. 2006/062

IMF Working Papers

Language:

English

Subjects (All):

Petroleum products--Prices.

Petroleum products.

Foreign exchange rates.

Interest rates.

Monetary policy.

Physical Description:

1 online resource (27 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilities and producers' market power. Exchange and interest rates do influence oil market equilibrium. The relationship between oil prices and interest rates is a two-way relationship that depends on the type of oil shock. During a supply shock, rising oil prices caused interest rates to increase; whereas during a demand shock, falling interest rates caused oil prices to rise. Record low interest rates led to high oil price volatility in 2005. Data shows that world economic growth and price stability require stable oil markets and therefore more prudent monetary policies.

Contents:

""Content""; ""I. INTRODUCTION""; ""II. OIL PRICE VOLATILITY""; ""III. THE DEMAND AND SUPPLY OF CRUDE OIL""; ""IV. ROLE OF MONETARY POLICY IN THE OIL MARKETS""; ""V. SOLUTION OF THE SEM""; ""VI. CONCLUSIONS""; ""APPENDIX""; ""REFERENCES""

Notes:

"March 2006."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613827111

9781462335688

1462335683

9781452712819

1452712816

9781283514668

1283514664

9781451908589

145190858X

OCLC:

694141278