02924nam 2200649Ia 450 991081074690332120200520144314.01-4623-3568-31-4527-1281-61-283-51466-41-4519-0858-X9786613827111(CKB)3360000000443639(EBL)3014561(SSID)ssj0000940737(PQKBManifestationID)11494007(PQKBTitleCode)TC0000940737(PQKBWorkID)10955892(PQKB)11351324(OCoLC)694141278(MiAaPQ)EBC3014561(IMF)WPIEE2006062(EXLCZ)99336000000044363920060602d2006 uf 0engur|n|---|||||txtccrWorld crude oil markets monetary policy and the recent oil shock /prepared by Noureddine Krichene1st ed.[Washington, D.C.] International Monetary Fund, African Dept.20061 online resource (27 p.)IMF working paper ;WP/06/62"March 2006."1-4518-6322-5 Includes bibliographical references.""Content""; ""I. INTRODUCTION""; ""II. OIL PRICE VOLATILITY""; ""III. THE DEMAND AND SUPPLY OF CRUDE OIL""; ""IV. ROLE OF MONETARY POLICY IN THE OIL MARKETS""; ""V. SOLUTION OF THE SEM""; ""VI. CONCLUSIONS""; ""APPENDIX""; ""REFERENCES""This paper examines the relationship between monetary policy and oil prices within a world oil demand and supply model. Low price and high income elasticities of demand and rigid supply explain high price volatilities and producers' market power. Exchange and interest rates do influence oil market equilibrium. The relationship between oil prices and interest rates is a two-way relationship that depends on the type of oil shock. During a supply shock, rising oil prices caused interest rates to increase; whereas during a demand shock, falling interest rates caused oil prices to rise. Record low interest rates led to high oil price volatility in 2005. Data shows that world economic growth and price stability require stable oil markets and therefore more prudent monetary policies.IMF working paper ;WP/06/62.Petroleum productsPricesForeign exchange ratesInterest ratesMonetary policyPetroleum productsPrices.Foreign exchange rates.Interest rates.Monetary policy.Krichene Noureddine861994International Monetary Fund.African Dept.MiAaPQMiAaPQMiAaPQBOOK9910810746903321World Crude Oil Markets3955453UNINA