Download full text
(260.8Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-95129-9
Exports for your reference manager
Monetary policy and the effect of the oil prices pass-through to inflation
[journal article]
Abstract The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for 2000-2017. It is shown that the impact of changes in oil prices... view more
The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for 2000-2017. It is shown that the impact of changes in oil prices on inflation is carried out predominantly through the channel of exchange rate. The paper demonstrates the influence of the transition to inflation targeting on the nature of the relationship between oil price shocks and inflation. This effect is asymmetrical: during periods of rising oil prices, inflation targeting reduces the effect of the oil prices pass-through, limiting the negative effects of shock. During periods of decline in oil prices, this monetary policy regime, in contrast, contributes to a stronger pass-through, helping to reduce inflation.... view less
Keywords
monetary policy; price; crude oil; inflation; rate of exchange
Classification
Political Economy
Free Keywords
inflation targeting; pass-through effect
Document language
English
Publication Year
2019
Page/Pages
p. 211-219
Journal
Russian Journal of Economics, 5 (2019) 3
DOI
https://doi.org/10.32609/j.ruje.5.47349
ISSN
2618-7213
Status
Published Version; reviewed
Licence
Creative Commons - Attribution-Noncommercial-No Derivative Works 4.0