A Brief Empirical Note on the Impact of Crude Oil Prices on Domestic Inflation: The Case of the United States, 1965-1999
This empirical study for the period 1965-1999 finds that a higher percentage rate of increase in the price of crude oil acts to increase domestic inflation in the United States. However, whereas this impact is statistically significant, the magnitude of the impact is modest. Therefore, the monetary authority in the United States should be careful to not overreact with contractionary policies simply because oil price inflation increases.
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Volume (Year): 53 (2000)
Issue (Month): 4 ()
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