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Energy markets and the euro area macroeconomy

Author

Listed:
  • Donoval, Milan
  • Gautier, Erwan
  • Nuño, Galo
  • Nakov, Anton
  • Jiménez, Noelia
  • de los Llanos Matea, María
  • Estrada, Ángel
  • Zioutou, Pinelopi
  • Bragoudakis, Zacharias
  • Weymes, Laura
  • O'Brien, Derry
  • Irac, Delphine
  • Maggiar, Nicolas
  • Faiella, Ivan
  • Car, Mikulas
  • Tepina, Monika
  • Amador, João
  • Breitenfellner, Andreas
  • Schotten, Guido
  • Micallef, Brian
  • Hubic, Amela
  • Bouchet, Muriel
  • Cleanthous, Lena
  • Venditti, Fabrizio
  • Slopek, Ulf
  • Hartmann, Christin
  • Landau, Bettina
  • Gattini, Luca
  • Fidora, Michael
  • Costantini, Riccardo
  • Consolo, Agostino
  • Beck, Roland
  • Sullivan, Claudia
  • Kelley, Sylvia
  • Meyler, Aidan
  • Strauch, Rolf
  • Lima, Ana
  • Lodge, David
  • Lombardi, Marco J.
  • Cornille, David
  • Baugnet, Vanessa
  • Vasardani, Melina A.
  • Spitzer, Martin
  • Soudan, Michel
  • Slavík, Michal
  • Skudelny, Frauke
  • Roma, Moreno
  • Mohr, Matthias
  • Mestre, Ricardo

Abstract

This report aims to analyse euro area energy markets and the impact of energy price changes on the macroeconomy from a monetary policy perspective. The core task of the report is to analyse the impact of energy price developments on output and consumer prices. Nevertheless, understanding the link between energy price fluctuations, inflationary pressures and the role of monetary policy in reacting to such pressure requires a deeper look at the structure of the economy. Energy prices have presented a challenge for the Eurosystem, as the volatility of the energy component of consumer prices has been high since the creation of EMU. At the same time, a look back into the past may not necessarily be very informative for gauging the likely impact of energy price changes on overall inflation in the future. For instance, the reaction of HICP inflation to energy price fluctuations seems to have been more muted during the past decade than in earlier periods such as the 1970s. JEL Classification: E52, E58, E44

Suggested Citation

  • Donoval, Milan & Gautier, Erwan & Nuño, Galo & Nakov, Anton & Jiménez, Noelia & de los Llanos Matea, María & Estrada, Ángel & Zioutou, Pinelopi & Bragoudakis, Zacharias & Weymes, Laura & O'Brien, Derr, 2010. "Energy markets and the euro area macroeconomy," Occasional Paper Series 113, European Central Bank.
    • Handle: RePEc:ecb:ecbops:2010113
    Note: 2253012
    as

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    File URL: https://www.ecb.europa.eu//pub/pdf/scpops/ecbocp113.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Anton Nakov & Galo Nuño, 2011. "A general equilibrium model of the oil market," Working Papers 1125, Banco de España.
    2. Pietro Cova & Alessandro Notarpietro & Massimiliano Pisani, 2020. "Protectionism and the effective lower bound in the euro area," Temi di discussione (Economic working papers) 1286, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    energy; inflation; macroeconomy; monetary policy; pass-through;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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