Does the Fed Respond to Oil Price Shocks
Bibliographic Data
| ID | 9705869 |
|---|---|
| Authors | Lutz Kilian (University of Michigan and CEPR), Logan T Lewis (0000-0002-4414-1919, University of Michigan) |
| Year | 2011 |
| Volume | 121 |
| Issue | 555 |
| Pages | 1047-1072 |
| Publication date | 2011-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2011.02437.x |
| OpenAlex | W2103727359 |
| Language | EN |
| Citations received | 17 |
| References cited | 26 |
A common view in the literature is that systematic monetary policy responses to the inflation caused by oil price shocks have been an important source of aggregate fluctuations in the US economy. Earlier empirical evidence in support of such a link was based on inappropriate econometric models. We show that there is no credible evidence that monetary policy responses to oil price shocks caused large aggregate fluctuations in the 1970s and 1980s or more recently. Our analysis suggests that the traditional monetary policy reaction framework should be replaced by models that take account of the endogeneity of the real price of oil and that allow policy responses to depend on the underlying causes of oil price shocks
Aggregate (composite · Aggregate demand · Econometrics · Economics · Endogeneity · Inflation (cosmology · Macroeconomics · Monetary economics · Monetary policy · Oil price · Price level · Energy, Environment, and Transportation Policies · Market Dynamics and Volatility · Monetary Policy and Economic Impact
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Uncertainty, Skewness, and the Business Cycle Through the Midas Lens
Oil prices, gasoline prices, and inflation expectations
A direct approach to Kilian–Lewis style counterfactual analysis in vector autoregression models
Business cycles in the USA
The effects of oil news shock on sectoral employment in the USA
Oil price volatility and the US stock market
Sparsity-induced identification of factor-augmented VAR models
Asymmetric Phase Shifts in U.S. Industrial Production Cycles
Oil and the economy
Financial sector profits, labor income, and the divergence of consumer and producer prices
Adverse effects of rising interest rates on sustainable energy transitions
Monetary Policy and Income Inequality in Korea
Oil prices, tourism income and economic growth
Silver fetters? The rise and fall of the Chinese price level 1928–34
The role of consumer sentiment in the transmission of monetary policy to consumer expenditure
New Introduction to Multiple Time Series Analysis
What is an oil shock?
Chapter 2 Monetary policy shocks
Large Bayesian vector auto regressions
Forecasting inflation
Not All Oil Price Shocks Are Alike
Do Energy Prices Respond to U.S. Macroeconomic News? A Test of the Hypothesis of Predetermined Energy Prices
Oil and the Macroeconomy When Prices Go Up and Down
Oil and the Macroeconomy Since the 1970s
| Unique citing works | 17 |
|---|---|
| Citations per year | 1,31 |
| Citation span | 2013 - 2026 (14) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 17 |