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Exchange Rates and Oil Prices

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  • van Amano, Robert A
  • Norden, Simon

Abstract

The paper documents a robust and interesting relationship between the real domestic price of oil and real effective exchange rates for Germany, Japan and the United States. It also offers an explanation of why the real oil price captures exogenous terms-of-trade shocks, and why such shocks could be the most important factor determining real exchange rates in the long run. Copyright 1998 by Blackwell Publishing Ltd.

Suggested Citation

  • van Amano, Robert A & Norden, Simon, 1998. "Exchange Rates and Oil Prices," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 683-694, November.
    • Handle: RePEc:bla:reviec:v:6:y:1998:i:4:p:683-94
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    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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