Get Now Oil and the World Economy

Oil and the World Economy

Authors : Mr. Michael Kumhof, Dirk Muir
Publisher : International Monetary Fund
Published Date : 2012-10-25
ISBN-13 : 9781475539974
Page : 31 Pages
Language : en

Descriptions Oil and the World Economy

This paper, using a six-region DSGE model of the world economy, assesses the GDP and current account implications of permanent oil supply shocks hitting the world economy at an unspecified future date. For modest-sized shocks and conventional production technologies the effects are modest. But for larger shocks, for elasticities of substitution that decline as oil usage is reduced to a minimum, and for production functions in which oil acts as a critical enabler of technologies, GDP growth could drop significantly. Also, oil prices could become so high that smooth adjustment, as assumed in the model, may become very difficult.

Related Post For Oil and the World Economy

    Jointly Optimal Monetary and Fiscal Policy Rules Under Borrowing Constraints
    International Currency Portfolios
    Monetary Policy in an Equilibrium Portfolio Balance Model (EPub)
    Politically Optimal Fiscal Policy
    A Party without a Hangover?on the Effects of U.S. Government Deficits
Post Other :