Monetary policy implications for an oil-exporting economy of lower long-run international oil prices

Borradores de Economia
Number: 
871
Published: 
Classification JEL: 
C61, E31, E37, E52, F41

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The sudden collapse of oil prices poses a challenge to inflation targeting central banks in oil exporting economies. This paper illustrates that challenge and conducts a quantitative assessment of the impact of permanent changes in oil prices in a small a