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Second-round effects after oil-price shocks: Evidence for the euro area and Germany

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  • Enders, Almira
  • Enders, Zeno

Abstract

We investigate second-round effects caused by oil-price shocks, calculating wage responses net of those movements that are induced through CPI changes. Results show no strong evidence for second-round effects in the euro area, and even less so in Germany.

Suggested Citation

  • Enders, Almira & Enders, Zeno, 2017. "Second-round effects after oil-price shocks: Evidence for the euro area and Germany," Economics Letters, Elsevier, vol. 159(C), pages 208-213.
    • Handle: RePEc:eee:ecolet:v:159:y:2017:i:c:p:208-213
    DOI: 10.1016/j.econlet.2017.08.017
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    References listed on IDEAS

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    1. Kilian, Lutz, 2017. "How the Tight Oil Boom Has Changed Oil and Gasoline Markets," CEPR Discussion Papers 11876, C.E.P.R. Discussion Papers.
    2. Christiane Baumeister & Lutz Kilian, 2016. "Lower Oil Prices and the U.S. Economy: Is This Time Different?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 47(2 (Fall)), pages 287-357.
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    4. Kai Carstensen & Steffen Elstner & Georg Paula, 2013. "How Much Did Oil Market Developments Contribute to the 2009 Recession in Germany?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 695-721, July.
    5. Gert Peersman & Ine van Robays, 2009. "Oil and the Euro area economy [Labour market implications of EU product market integration]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 24(60), pages 603-651.
    6. Lutz Kilian, 2009. "Not All Oil Price Shocks Are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market," American Economic Review, American Economic Association, vol. 99(3), pages 1053-1069, June.
    7. Bachmann, Rüdiger & Sims, Eric R., 2012. "Confidence and the transmission of government spending shocks," Journal of Monetary Economics, Elsevier, vol. 59(3), pages 235-249.
    8. Herwartz, Helmut & Plödt, Martin, 2016. "The macroeconomic effects of oil price shocks: Evidence from a statistical identification approach," Journal of International Money and Finance, Elsevier, vol. 61(C), pages 30-44.
    9. Riggi, Marianna & Venditti, Fabrizio, 2015. "The time varying effect of oil price shocks on euro-area exports," Journal of Economic Dynamics and Control, Elsevier, vol. 59(C), pages 75-94.
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    Cited by:

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    3. Chen, Shiu-Sheng & Huang, Shiangtsz & Lin, Tzu-Yu, 2022. "How do oil prices affect emerging market sovereign bond spreads?," Journal of International Money and Finance, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    Second-round effects; Oil-price shocks; VARs;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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