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Oil Shocks: How Destabilizing are they?

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  • Bhattacharya, Jyotirmoy

Abstract

This note examines Prabhat Patnaik's argument that the contemporary international financial system crucially requires the stability of oil prices in terms of the dollar. By comparing the macroeconomic impact of recent oil shocks to those of the 1970s, it argues that sharp changes in the dollar price of oil need not necessarily lead to instability.

Suggested Citation

  • Bhattacharya, Jyotirmoy, 2008. "Oil Shocks: How Destabilizing are they?," MPRA Paper 12116, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12116
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    File URL: https://mpra.ub.uni-muenchen.de/12116/1/MPRA_paper_12116.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    oil price; inflation; recession; dollar;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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