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Oil price shocks and the US economy: What makes the latest oil price episode different?

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Gadea M. D., Gomez-Loscos A.
International Economics Letters
|
2014
|
vol. 3
|
issue 2
36-44
EN
This paper distinguishes different periods in the relationship between oil price shocks, economic growth, and inflation for the US economy. Focusing on the latest period, covering mainly the noughties, a change is found in the exogeneity pattern associated with recent oil price episodes. A significant effect of GDP growth on oil price movements is identified, while there is no evidence of any influence of the latter on either GDP growth or inflation found.
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