Central Bank of Nigeria, Research Department.
Macroeconomics, Higher oil prices, Oil prices shock, Monetary policy
The objective of the article was to use the IMF's multi-country model, MULTIMOD, to analyze the macroeconomic effects of oil prices shocks, with particular focus on the implications to economic activity and inflation in the industrial countries. The authors believed that the MULTIMOD simulations could shed more light on the basic issues that have dominated empirical enquiry on oil price increases, as well as provide some perspectives on the key channels of transmission and the implications for monetary policy. This review examines the main issues discussed in the paper.
Masha,I, (2002). The macroeconomic effects of higher oil prices, IMF Working Paper WP/01/14 By Benjamin Hunt, Peter Isard and Douglas Laxton: a review. Economic and Financial Review, 40(1), 119-126