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Viability of Keeping a Fixed Exchange Rate in an Oil Exporting Country: Some Results for Libya from a Computable General Equilibrium Model

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Listed:
  • Dewhurst John

    (University of Dundee)

  • Kerwat Jamal

    (University of Dundee)

  • Molana Hassan

    (University of Dundee)

Abstract

We use the CGE analysis to provide an assessment of the way an oil exporting LDC is affected by a positive exogenous shock due to the rise in the price of oil. Our main purpose is to examine how the effects differ under fixed and flexible exchange rate regimes; it is desirable, from a short-run policy point of view, if a situation could be identified in which the benefits accrued from the higher oil price lead to a rise in households' and government's consumption as well as to a considerably higher level of investment.

Suggested Citation

  • Dewhurst John & Kerwat Jamal & Molana Hassan, 2010. "Viability of Keeping a Fixed Exchange Rate in an Oil Exporting Country: Some Results for Libya from a Computable General Equilibrium Model," Review of Middle East Economics and Finance, De Gruyter, vol. 5(3), pages 24-45, February.
    • Handle: RePEc:bpj:rmeecf:v:5:y:2010:i:3:n:2
    DOI: 10.2202/1475-3693.1249
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    References listed on IDEAS

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