ASSESSMENT OF THE CHANNELS OF TRANSMISSION OF OIL PRICE FLUCTUATIONS TO THE ECONOMY

Farhad Taghizadeh-Hesary, Naoyuki Yoshino This paper develops a New Keynesian model to examine a theoretical global economy with two basic macroeconomic components: an energy1 producer and an energy consumer. This simple economy uses these two components to evaluate how oil prices affect the consumer economy’s gross domestic product and inflation. This model assumes that changes […]