Optimal Monetary Policy and Oil Price Shocks

The main result is that oil price shocks generate an endogenous trade-off between inflation and output stabilisation when oil has low ...

Optimal Monetary Policy and Oil Price Shocks - DukeSpace

Comparing the actual and the Ramsey optimal monetary policy response to an oil price shock, I find that the optimal policy allows for more inflation, a larger ...

Oil price shocks and the optimality of monetary policy - ScienceDirect

I find that monetary policy amplified the negative effect of the oil price shock. The optimal response to the shock would have been to raise inflation and ...

OPTIMAL MONETARY POLICY AND OIL PRICE SHOCKS

The central finding of this Chapter is that the optimal policy is associated with a smaller drop in GDP and other macroeconomic variables. The latter results ...

Optimal monetary policy and the transmission of oil-supply shocks to ...

First we provide some evidence on the macroeconomic transmission of oil price shocks to the euro area within an open-economy structural modeling framework ...

OIL SHOCKS AND OPTIMAL MONETARY POLICY | Cambridge Core

The main result is that oil price shocks generate an endogenous trade-off between inflation and output stabilization when oil has low substitutability in ...

Monetary Policy Response to Oil Price Shocks - IDEAS/RePEc

How should monetary authorities react to an oil price shock? ... While the first two conditions are necessary to introduce a microfounded monetary policy trade- ...

Systematic Monetary Policy and the Effects of Oil Price Shocks

We show that this ap- proach provides reasonable results for the analysis of shocks to mone- tary policy and to oil prices; and, in particular, we find that the ...

Monetary Policy Response to Oil Price Shocks - San Francisco Fed

The New Keynesian literature has concluded that ensuring complete price stability is the optimal thing to do. In contrast, this paper argues ...

Nature of Oil Price Shocks and Monetary Policy

Section 5 investigates the shape of optimal monetary policy depending on the stickiness of oil prices. Concluding remarks are provided in Section 6. 6Janet ...

Anticipated and unanticipated oil price shocks and optimal monetary ...

Our analysis is based on a stylized New Keynesian model of a small open economy. Our main findings are the following: i) Standard interest rate rules amplify ...

Oil price shocks, monetary policy and current account imbalances ...

stress the fact that the source of the oil price shock is crucial to determine the optimal monetary policy response, Bodenstein and Guerrieri (2011), using an.

Oil shocks and optimal monetary policy - IDEAS/RePEc

The main result is that oil price shocks generate an endogenous trade-off between inflation and output stabilisation when oil has low substitutability in ...

Monetary Policy Responses to Oil Price Fluctuations

oil price shocks and also finds that optimal policy cannot stabilize at the same time prices, wages, and the welfare-relevant output gap ...

Monetary Policy Response to Oil Price Shocks

Their main finding in this context is that the optimal rule reacts strongly to inflation but accomodates output gap fluctuations, suggesting again a policy ...

Oil Price Shocks, Monetary Policy Rules and Welfare∗

Under complete international financial markets, we find that the optimal interest rate rule is inertial, it reacts strongly and positively to ...

Energy price shocks, monetary policy and inequality

sian model incorporating oil and showing that studying oil price shocks and monetary policy ... Optimal monetary policy during a cost-of-living crisis.

Oil Shocks and Optimal Monetary Policy | Request PDF

The main result is that oil price shocks generate an endogenous trade-off between inflation and output stabilisation when oil has low ...

Monetary Policy Response to Oil Price Shocks - NATAL - 2012

How should monetary authorities react to an oil price shock? This paper shows that in a noncompetitive economy, policies that perfectly ...

External Shocks and Optimal Monetary Policy in Oil Exporting Small ...

The global demand shock contributes the most to the evolution of the domestic output growth and inflation while oil price shock exerts ...