1994/06/01 by Knut Anton Mork
Economics, Econometrics and Finance · Energy · #Global Energy and Sustainability Research #Market Dynamics and Volatility #Monetary Policy and Economic Impact
paper · doi:10.5547/issn0195-6574-ej-vol15-nosi-3
openalex publication_date 1994/06/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/06/03
The last twenty years have seen a number of oil-price changes with macroeconomic effects. Oilprice increases spur inflation and produce recessions. Oil price declines dampen inflation, but do not necessarily boost real activity. The correlations can be traced back to World War II. The paper gives a survey of oil market events with macroeconomic consequences. It also discusses hypotheses about the nature of the link and efforts to incorporate oil in macroeconomic models. Business cycle research has recently advanced sectoral imbalance and uncertainty as leading hypotheses to explain the apparent asymmetry in the macroeconomic effects of oil price changes.