Monetary Response to Oil Price Shock in Asian Oil Importing Countries: Evaluation of Inflation Targeting Framework

Jena, Devasmita; Kataruka, Ishika

doi:10.1007/s40953-022-00328-5

Cited by 2 publications

(1 citation statement)

References 57 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Fluctuations in oil prices can lead to significant spikes in inflation and cause corresponding responses from central banks. Jena and Kataruka (2022), in a study of five Asian countries, found the effectiveness of inflation targeting in mitigating oil shocks. The results of López-Villavicencio and Pourroy (2019) show that the pass-through effect of changes in oil prices is higher in countries with inflation targeting.…”

Section: Literature Reviewmentioning

confidence: 99%

Central Bank Independence and Oil Prices Impact on Macroeconomic Indicators

Mukhamediyev,

Zhamanbayev,

Mukhamediyeva

2024

IJEEP

View full text Add to dashboard Cite

The central bank's independence and oil prices can influence macroeconomic indicators. Many articles are devoted to studying their influence on individual macroeconomic indicators. As it turned out, the study's results depend on the sample of countries and the interval. They can lead to contradictory conclusions: from a negative or positive effect to its complete absence. However, these issues have not been sufficiently studied for post-Soviet countries with peculiarities in their past development. This study examines the impact of central bank independence (CBI) and oil prices on economic growth, inflation, and income inequality in post-Soviet and developed countries from 2001 to 2020. Based on the analysis of panel data, it was found that strengthening the independence of central banks does not significantly impact economic growth, inflation, and income inequality in developed countries but contributes to their reduction in post-Soviet countries. Higher oil prices reduce economic growth and increase income inequality in developed countries and reduce economic growth, but do not affect income inequality in post-Soviet countries. An increase in oil price increments increases inflation in both samples of countries. The results of this study may be useful for developing macroeconomic policies.

show abstract

Section: Literature Reviewmentioning

confidence: 99%