Oil-price shocks and the macro-economy: Does the exchange rate regime matter?
Using a panel Vector Auto-Regression (panel VAR) of nine of the OECD’s major oil-importing countries and Reinhart and Rogoff’s de facto classification of exchange rate regimes, we find support for the hypothesis that flexible exchange regimes better absorb oil-price shocks. The price level, output,...
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| Format: | Conference or Workshop Item |
| Language: | English |
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2007
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| Online Access: | https://repo.uum.edu.my/id/eprint/2350/1/Almukhtar_Al-Abri.pdf |
| _version_ | 1803624462391705600 |
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| author | Al-Abri, Almukhtar |
| author_facet | Al-Abri, Almukhtar |
| author_sort | Al-Abri, Almukhtar |
| collection | UUM |
| description | Using a panel Vector Auto-Regression (panel VAR) of nine of the OECD’s major oil-importing countries and Reinhart and Rogoff’s de facto classification of exchange rate regimes, we find support for the hypothesis that flexible exchange regimes better absorb oil-price shocks. The price level,
output, and the real exchange rate exhibit smoother adjustment to their long-run equilibrium when the de facto exchange rate regime was flexible. We also document feedback from the real effective exchange rate and inflation rate to the domestic-currency real oil price shock, supporting the growing notion that oil price shocks are not purely exogenous to developed economies. |
| first_indexed | 2024-07-04T05:18:46Z |
| format | Conference or Workshop Item |
| id | uum-2350 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:18:46Z |
| publishDate | 2007 |
| record_format | dspace |
| spelling | uum-23502011-02-14T08:21:22Z https://repo.uum.edu.my/id/eprint/2350/ Oil-price shocks and the macro-economy: Does the exchange rate regime matter? Al-Abri, Almukhtar HC Economic History and Conditions Using a panel Vector Auto-Regression (panel VAR) of nine of the OECD’s major oil-importing countries and Reinhart and Rogoff’s de facto classification of exchange rate regimes, we find support for the hypothesis that flexible exchange regimes better absorb oil-price shocks. The price level, output, and the real exchange rate exhibit smoother adjustment to their long-run equilibrium when the de facto exchange rate regime was flexible. We also document feedback from the real effective exchange rate and inflation rate to the domestic-currency real oil price shock, supporting the growing notion that oil price shocks are not purely exogenous to developed economies. 2007-12 Conference or Workshop Item NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/2350/1/Almukhtar_Al-Abri.pdf Al-Abri, Almukhtar (2007) Oil-price shocks and the macro-economy: Does the exchange rate regime matter? In: International Economic Conference on Trade and Industry (IECTI) 2007, 3 - 5 December 2007, Bayview Hotel Georgetown, Penang. (Unpublished) |
| spellingShingle | HC Economic History and Conditions Al-Abri, Almukhtar Oil-price shocks and the macro-economy: Does the exchange rate regime matter? |
| title | Oil-price shocks and the macro-economy: Does the exchange rate regime matter? |
| title_full | Oil-price shocks and the macro-economy: Does the exchange rate regime matter? |
| title_fullStr | Oil-price shocks and the macro-economy: Does the exchange rate regime matter? |
| title_full_unstemmed | Oil-price shocks and the macro-economy: Does the exchange rate regime matter? |
| title_short | Oil-price shocks and the macro-economy: Does the exchange rate regime matter? |
| title_sort | oil price shocks and the macro economy does the exchange rate regime matter |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/2350/1/Almukhtar_Al-Abri.pdf |
| work_keys_str_mv | AT alabrialmukhtar oilpriceshocksandthemacroeconomydoestheexchangerateregimematter |