Monetary policy trade-offs with a dominant oil producer

Journal of Money, Credit and Banking

Volumn 42, Issue 1, 2010, Pages 1-32

  Nakov, Anton ^a   Pescatori, Andrea ^b  

^a Estudios Monetarios y Financieros   (Spain)

^b FEDERAL RESERVE BANK OF CLEVELAND   (United States)

Author keywords

Dominant producer; Monetary policy; Oil shocks; OPEC; Trade off

Indexed keywords

EID: 73449105069     PISSN: 00222879     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1538-4616.2009.00276.x     Document Type: Article

References (31)

1. Backus, David, and Mario Crucini 2000 Oil Prices and the Terms of Trade Journal of International Economics, 50, 185 213.
2. Barsky, Robert B., and Lutz Kilian 2004 Oil and the Macroeconomy Since the 1970s Journal of Economic Perspectives, 18, 115 134.
3. Bernanke, Ben S., Mark Gertler, and Mark W. Watson 1997 Systematic Monetary Policy and the Effects of Oil Price Shocks Brookings Papers on Economic Activity: Macroeconomics.
4. Bernanke, Ben S., Mark Gertler, and Mark W. Watson 2004 Oil Shocks and Aggregate Macroeconomic Behavior: The Role of Monetary Policy: A Reply Journal of Money, Credit and Banking, 36, 287 291.
5. Blanchard, Olivier Jean, and Jordi Galí 2007 Real Wage Rigidities and the New-Keynesian Model Journal of Money, Credit, and Banking 39 (Supplement 35 66.
6. Blanchard, Olivier Jean, and Jordi Galí 2008 The Macroeconomic Effects of Oil Price Shocks: Why Are the 2000s so Different from the 1970s CREI Working Paper.
7. Blanchard, Olivier Jean, and Charles M. Kahn 1980 The Solution of Linear Difference Models under Rational Expectations Econometrica, 48, 1305 1311.
8. Bodenstein, Martin, Christopher J. Erceg, and Luca Guerrieri 2008 Optimal Monetary Policy with Distinct Core and Headline Inflation Rates Journal of Monetary Economics, 55 (Supplement S18 S33.
9. Calvo, Guillermo A. (1983 Staggered Prices in a Utility-Maximizing Framework Journal of Monetary Economics, 12, 383 398.
10. Carlstrom, Charles T., and Timothy S. Fuerst 2005 Oil Prices, Monetary Policy, and Counterfactual Experiments Working Paper No. 0510, Federal Reserve Bank of Cleveland.
11. Castillo, Paul., Carlos Montoro, and Vicente Tuesta 2007 Inflation Premium and Oil Price Volatility Discussion Paper, Centre for Economic Performance, London School of Economics and Political Science.
12. Clarida, Richard, Jordi Galí, and Mark Gertler 2000 Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory Quarterly Journal of Economics, 115, 147 180.
13. De Walque, Gregory, Frank Smets, and Rafael Wouters 2005 An Estimated Two-Country DSGE Model for the Euro Area and the U.S. Economy Mimeo, European Central Bank.
14. Elekdag, Selim, René Lalonde, Douglas Laxton, Dirk Muir, and Paolo Pesenti 2008 Oil Price Movements and the Global Economy: A Model-Based Assessment NBER Working Paper No. 13792.
15. Erceg, Christopher J., Dale W. Henderson, and Andrew T. Levin 2000 Optimal Monetary Policy with Staggered Wage and Price Contracts Journal of Monetary Economics, 46, 281 313.
16. Galí, Jordi 2008) Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New-Keynesian Framework. Princeton, NJ : Princeton University Press.
17. Hamilton, James. D. (1983 Oil and the Macroeconomy since World War II Journal of Political Economy, 91, 228 248.
18. Hamilton, James D., and Ana M. Herrera 2004 Oil Shocks and Aggregate Macroeconomic Behavior: The Role of Monetary Policy Journal of Money, Credit and Banking, 36, 265 287.
19. Jaimovich, Nir, and Max Floetotto 2008 Firm Dynamics, Markup Variations, and the Business Cycle Journal of Monetary Economics, 55, 1238 1252.
20. Kilian, Lutz 2008 Exogenous Oil Supply Shocks: How Big Are They and How Much Do They Matter for the U.S. Economy Review of Economics and Statistics, 90, 216 240.
21. Kilian, Lutz 2009 Not All Oil Price Shocks Are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market American Economic Review, 99, 1053 1069.
22. Kim, In-Moo, and Prakash Loungani 1992 The role of energy in real business cycle models Journal of Monetary Economics, 29, 173 189.
23. Leduc, Sylvain, and Keith Sill 2004 A Quantitative Analysis of Oil-Price Shocks, Systematic Monetary Policy, and Economic Downturns Journal of Monetary Economics, 51, 781 808.
24. Leduc, Sylvain, and Keith Sill 2007 Monetary Policy, Oil Shocks, and TFP: Accounting for the Decline in US Volatility Review of Economic Dynamics, 10, 595 614.
25. Leeper, Eric M. (1991 Equilibria under 'active' and 'passive' monetary and fiscal policies Journal of Monetary Economics, 27, 129 147.
26. Nakov, Anton, and Andres Pescatori 2007 Inflation-Output Gap Tradeoff with a Dominant Oil Supplier Working Paper No. 0723, Banco de España.
27. Nakov, Anton, and Andrea Pescatori Forthcoming Oil and the Great Moderation Economic Journal.
28. Salant, Stephen W. (1976 Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market Journal of Political Economy, 84, 1079 1094.
29. Steinsson, J. (2003 Optimal Monetary Policy in An Economy with Inflation Persistence Journal of Monetary Economics, 50, 1425 1456.
30. Taylor, John 1993 Discretion versus Policy Rules in Practice Carnegie-Rochester Conference Series on Public Policy, 39, 195 214.
31. Woodford, Michael 2003) Interest and Prices. Princeton, NJ : Princeton University Press.