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

Número: 
871
Publicado: 
Clasificación JEL: 
C61, E31, E37, E52, F41
Palabras clave: 
Oil Prices, Precautionary Savings, Monetary policy, Credit

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