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Oil prices, economic activity and inflation: evidence for some Asian countries

  • Cunado, J.
  • Perez de Gracia, F.

In this paper we study the oil prices-macroeconomy relationship by means of studying the impact of oil price shocks on both economic activity and consumer price indexes for six Asian countries over the period 1975Q1-2002Q2. The results suggest that oil prices have a significant effect on both economic activity and price indexes although the impact is limited to the short-run and more significant when oil price shocks are defined in local currencies. Moreover, we find evidence of asymmetries in the oil prices-macroeconomy relationship for some of the Asian countries.

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Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

Volume (Year): 45 (2005)
Issue (Month): 1 (February)
Pages: 65-83

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Handle: RePEc:eee:quaeco:v:45:y:2005:i:1:p:65-83
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620167

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