The Macroeconomic Effects of Oil Shocks: Why are the 2000s So Different from the 1970s? / Olivier J. Blanchard, Jordi Gali.

Format:

Book

Author/Creator:

Blanchard, Olivier J.

Contributor:

National Bureau of Economic Research.

Gali, Jordi.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13368.

NBER working paper series no. w13368

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Macroeconomic Effects of Oil Shocks

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

We characterize the macroeconomic performance of a set of industrialized economies in the aftermath of the oil price shocks of the 1970s and of the last decade, focusing on the differences across episodes. We examine four different hypotheses for the mild effects on inflation and economic activity of the recent increase in the price of oil: (a) good luck (i.e. lack of concurrent adverse shocks), (b) smaller share of oil in production, (c) more flexible labor markets, and (d) improvements in monetary policy. We conclude that all four have played an important role.

Notes:

Print version record

September 2007.