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Musings on the Macroeconomic Effects of Oil Price Increases

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  • Chris Varvares

Abstract

In considering the macroeconomic effects of oil price increases, it is important to be mindful of whether changes come from the supply or demand side and whether they are accompanied by impacts on financial markets. Also, it is important to know whether a change is likely to be temporary or permanent and whether it can be offset by policy responses. Finally, the short-run effects of oil price changes are likely to be different from the long-run effects. This paper explores these questions and their ramifications for macroeconomic growth.

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  • Chris Varvares, 2012. "Musings on the Macroeconomic Effects of Oil Price Increases," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 47(3), pages 193-196, July.
    • Handle: RePEc:pal:buseco:v:47:y:2012:i:3:p:193-196
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