Oil Shocks: How Destabilizing are they?

Bhattacharya, Jyotirmoy (2008): Oil Shocks: How Destabilizing are they?

Abstract

This note examines Prabhat Patnaik's argument that the contemporary international financial system crucially requires the stability of oil prices in terms of the dollar. By comparing the macroeconomic impact of recent oil shocks to those of the 1970s, it argues that sharp changes in the dollar price of oil need not necessarily lead to instability.

• Item Type: MPRA Paper
• Language: English
• Keywords: oil price, inflation, recession, dollar
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

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