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Oil price shocks and the macroeconomy

Paul Segal.

in Oxford Review of Economic Policy

January 2011; p ublished online January 2011 .

Journal Article. Subjects: Energy Economics; Macroeconomics: Consumption, Saving, Production, Employment, and Investment; Prices, Business Fluctuations, and Cycles; Monetary Policy, Central Banking, and the Supply of Money and Credit. 9600 words.

This paper examines the impact of oil price shocks and attempts to explain why the rise in oil prices up to 2008 had little impact on the world economy. It makes three main arguments....