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Oil price shocks and domestic inflation in Thailand

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  • Jiranyakul, Komain

Abstract

This paper employ monthly data to examine the empirical relationship between oil price shocks and domestic inflation rate during 1993 and 2013. The results show that oil price, domestic or international, does not have the long-run impact on consumer prices. However, oil price shocks cause inflation to increase while oil price uncertainty does not cause an increase in inflation. Furthermore, inflation itself causes inflation uncertainty. The findings of this study encourage the monetary authorities to formulate a more accommodative policy to respond to oil price shocks.

Suggested Citation

  • Jiranyakul, Komain, 2015. "Oil price shocks and domestic inflation in Thailand," MPRA Paper 62797, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:62797
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    References listed on IDEAS

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    Cited by:

    1. repec:asi:ajemod:2018:p:317-326 is not listed on IDEAS
    2. repec:blg:reveco:v:69:y:2017:i:5:p:55-72 is not listed on IDEAS

    More about this item

    Keywords

    Oil shocks; inflation; bivariate GARCH; causality;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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