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Oil Prices, Economic Activity and Inflation: Evidence for Some Asian Countries

  • Juncal Cunado

    ()

    (School of Economics and Business Administration, University of Navarra)

  • Fernando Pérez de Gracia

    ()

    (School of Economics and Business Administration, University of Navarra)

In this paper we study the oil prices-macroeconomy relationship by means of studying the impact of oil price shocks on both economic activity and consumer price indexes for six Asian countries over the period 1975Q1-2002Q2. The results suggest that oil prices have a significant effect on both economic activity and price indexes although the impact is limited to the short-run and more significant when oil price shocks are defined in local currencies. Moreover, we find evidence of asymmetries in the oil prices-macroeconomy relationship for some of the Asian countries.

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File URL: http://www.unav.es/facultad/econom/files/workingpapersmodule/@random437a054f974a0/1132584239_wp0604.pdf
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Paper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 06/04.

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Length: 36 pages pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:una:unccee:wp0604
Contact details of provider: Web page: http://www.unav.es/facultad/econom

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