The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s?
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 o...
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| Other Authors: | |
| Format: | Working Paper |
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MIT Center for Energy and Environmental Policy Research
2009
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| Online Access: | http://hdl.handle.net/1721.1/45126 |
| _version_ | 1811097861052432384 |
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| author | Blanchard, Olivier Galí, Jordi |
| author2 | Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. |
| author_facet | Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. Blanchard, Olivier Galí, Jordi |
| author_sort | Blanchard, Olivier |
| collection | MIT |
| description | 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. |
| first_indexed | 2024-09-23T17:06:07Z |
| format | Working Paper |
| id | mit-1721.1/45126 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T17:06:07Z |
| publishDate | 2009 |
| publisher | MIT Center for Energy and Environmental Policy Research |
| record_format | dspace |
| spelling | mit-1721.1/451262019-04-10T14:52:29Z The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? Blanchard, Olivier Galí, Jordi Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. 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. 2009-04-09T20:05:15Z 2009-04-09T20:05:15Z 2007 Working Paper 2007-011 http://hdl.handle.net/1721.1/45126 244574931 MIT-CEEPR (Series) ; 07-011WP. 77 p application/pdf MIT Center for Energy and Environmental Policy Research |
| spellingShingle | Blanchard, Olivier Galí, Jordi The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? |
| title | The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? |
| title_full | The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? |
| title_fullStr | The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? |
| title_full_unstemmed | The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? |
| title_short | The macroeconomic effects of oil price shocks : why are the 2000s so different from the 1920s? |
| title_sort | macroeconomic effects of oil price shocks why are the 2000s so different from the 1920s |
| url | http://hdl.handle.net/1721.1/45126 |
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