The Sensitivity of the General Price Level to Changes in the Price of Crude Oil
There are many direct and indirect effects of changing crude oil prices on the inflation rate, so it is not surprising that there are different views about the resulting effects on the general price level and also on other aspects of the general economy. This study, estimates the direct and indirect effects of oil price changes on the economy-wide rate of inflation, which then has effects on spending and producing decisions. However, in this forum, we do not try to estimate the full indirect effects on the level of economic activity, such as effects on real GDP.Business Economics (2005) 40, 74–77; doi:10.2145/20050407
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Volume (Year): 40 (2005)
Issue (Month): 4 (October)
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