Search Results
Journal Article
How to save gas
Pricing mechanisms, not fuel-economy standards, offer the best hope for reducing motor fuel consumption
Journal Article
Oil price shocks and inflation risk
Oil price shocks appear to have only transitory effects on headline inflation and virtually no impact on measures of underlying trend inflation.
Journal Article
Oil prices and inflation
This Economic Letter examines the impact of rising oil prices on core inflation over the last decade for four economies: the U.S., the euro area, Canada, and the U.K.
Journal Article
Oil price volatility and U.S. macroeconomic activity
Oil shocks exert influence on macroeconomic activity through various channels, many of which imply a symmetric effect. However, the effect can also be asymmetric. In particular, sharp oil price changes-either increases or decreases-may reduce aggregate output temporarily because they delay business investment by raising uncertainty or induce costly sectoral resource reallocation. Consistent with these asymmetric-effect hypotheses, the authors find that a volatility measure constructed using daily crude oil futures prices has a negative and significant effect on future gross domestic product ...
Working Paper
Monetary policy response to oil price shocks
How should monetary authorities react to an oil price shock? This paper argues that a meaningful trade-off between stabilizing inflation and the welfare relevant output gap arises in a distorted economy once one recognizes (1) that oil (energy) cannot be easily substituted by other factors, (2) that monopolistic competition implies that production is suboptimally low in the steady state, and (3) that increases in oil prices also directly affect consumption by raising the price of fuel, heating oil, and other energy sources. While the first two conditions are necessary to introduce a ...
Journal Article
The great moderation: good luck, good policy, or less oil dependence?
Three explanations have been suggested for the moderation in real GDP and inflation that has occurred in industrialized countries since the 1980s: good luck, better monetary policy, and structural changes in the economy. Recent research finds that better monetary policy explains most of the moderation in inflation, and good luck and the less-intensive use of oil (a structural change) have played a major role in the moderation of GDP.
Speech
A look inside a key economic debate: how should monetary policy respond to price increases driven by supply shocks?
Remarks by Eric S. Rosengren, President and Chief Executive Officer, Federal Reserve Bank of Boston, to the Massachusetts Chapter of NAIOP, the Commercial Real Estate Development Association, May 4, 2011
Journal Article
A case for oil?
Speech
Regional economy and current trends in regional employment
Remarks at the Quarterly Regional Economic Press Briefing, New York City.
Working Paper
Oil and the Great Moderation
We assess the extent to which the period of great U.S. macroeconomic stability since the mid-1980s can be accounted for by changes in oil shocks and the oil share in GDP. To do this we estimate a DSGE model with an oil-producing sector before and after 1984 and perform counterfactual simulations. We nest two popular explanations for the Great Moderation: (1) smaller (non-oil) real shocks; and (2) better monetary policy. We find that the reduced oil share accounted for as much as one-third of the inflation moderation and 13% of the growth moderation, while smaller oil shocks accounted for 11% ...