Financial and monetary policy responses to oil price shocks: evidence from oil-importing and oil-exporting countries

In this study, we investigate the financial and monetary policy responses to oil price shocks using a Structural VAR framework. We distinguish between net oil-importing and net oil-exporting countries. Since the 80s, a significant number of empirical studies have been published investigating the effect of oil prices on macroeconomic and financial variables. Most of these studies though, do not make a distinction between oil-importing and oil-exporting economies. Overall, our results indicate that the level of inflation in both net oil-exporting and net oil-importing countries is significantly affected by oil price innovations. Furthermore, we find that the response of interest rates to an oil price shock depends heavily on the monetary policy regime of each country. Finally, stock markets operating in net oil-importing countries exhibit a negative response to increased oil prices. The reverse is true for the stock market of the net oil-exporting countries. We find evidence that the magnitude of stock market responses to oil price shocks is higher for the newly established and/or less liquid stock market

An Interpretative Survey of Oil Price-GDP Elasticities

In the context of rising crude oil prices observed in the last five years, this paper attempts to shed light on the possible consequences of a costlier barrel. We shall begin with a brief presentation of the main results of the analyses conducted in the last 30 years, concerning the impact of energy prices on economic activity. We shall then interpret these analyses and their conclusions in a frequencies framework by distinguishing between the impact of an upward disequilibrium and an upturn in the equilibrium of the oil prices. We shall try to draw a number of lessons about the anticipated effects of the recent trend in energy prices

Converging transport policy, industrial policy and environmental policy: The implications for localities and social equity

This article argues that nurturing the nascent electric vehicle industry and the attempts to achieve low carbon mobility in Europe, while laudable policy aims, lack a coherent treatment of social equity. The transition process is assumed to be largely technocratic and unproblematic. Consequently, the article identifies inter- and intra-regional dimensions of inequality that are emerging around the convergence of transport policy, industrial policy and environmental policy. First, inter-regional competition and a lack of national or international coordination will result in some regions failing to capture the wealth creation benefits of this new industry. Second, within regions the privileges accorded to those owning and using electric vehicles will further exacerbate mobility disadvantage for those excluded from ownership or use. It is concluded that transitions theory is overly technocentric and pluralist, and lacking in critical content