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Oil Prices, Monetary Policy, and Counterfactual Experiments

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  • Carlstrom, Charles T.
  • Fuerst, Timothy S.

Abstract

Recessions are associated with both rising oil prices and increases in the federal funds rate. Are recessions caused by the spikes in oil prices or by the sharp tightening of monetary policy? This paper discusses the difficulties in disentangling these two effects.

Suggested Citation

  • Carlstrom, Charles T. & Fuerst, Timothy S., 2006. "Oil Prices, Monetary Policy, and Counterfactual Experiments," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(7), pages 1945-1958, October.
    • Handle: RePEc:mcb:jmoncb:v:38:y:2006:i:7:p:1945-1958
    DOI: 10.1353/mcb.2006.0090
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    References listed on IDEAS

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