Oil-price shocks and the macro-economy: Does the exchange rate regime matter?

• Main Author: Al-Abri, Almukhtar
• Format: Conference or Workshop Item
• Language: English
• Published: 2007
• Subjects: HC Economic History and Conditions
• Online Access: http://repo.uum.edu.my/2350/1/Almukhtar_Al-Abri.pdf; http://repo.uum.edu.my/2350/

Using a panel Vector Auto-Regression (panel VAR) of nine of the OECD’s major oil-importing countries and Reinhart and Rogoff’s de facto classification of exchange rate regimes, we find support for the hypothesis that flexible exchange regimes better absorb oil-price shocks. The price level, output,...