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Sources of Volatility during Four Oil Price Crashes / Baffes, John.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Baffes, John
Contributor:
Baffes, John
Kshirsagar, Varun
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Crude oil price.
Debt markets.
Economic conditions and volatility.
Emerging markets.
Finance and financial sector development.
International economics & trade access to markets.
Macroeconomics and economic growth.
Markets & market access.
Price volatility.
Private sector development.
Local Subjects:
Crude oil price.
Debt markets.
Economic conditions and volatility.
Emerging markets.
Finance and financial sector development.
International economics & trade access to markets.
Macroeconomics and economic growth.
Markets & market access.
Price volatility.
Private sector development.
Physical Description:
1 online resource (14 pages)
Place of Publication:
Washington, D.C. : The World Bank, 2015.
System Details:
data file
Summary:
Previous sharp oil price declines have been accompanied by elevated ex post volatility. In contrast, volatility was much less elevated during the oil price crash in 2014/15. This paper provides evidence that oil prices declined in a relatively measured manner during 2014/15, with dispersion of price changes that was considerably smaller than comparable oil price declines. This finding is robust to nonparametric and GARCH measures of volatility. Further, the U.S. dollar appreciation exerted a strong influence on volatility during the recent crash; in contrast, the impact of shocks on equity markets was muted.

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