Series: IMF Working Papers
Author(s): Noureddine Krichene
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 2006
Keywords: elasticities, impulse responses, multipliers, volatility, natural gas, oil demand, crude oil price, Money and Interest Rates: General, Monetary Policy, Central Banking
This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilit...