Oil prices, fiscal policy and business cycle

In countries with a large oil sector relative to the rest of the economy, oil price changes affect the economic cycle through fiscal policy, finds a new paper from the International Monetary Fund.

The authors show that fiscal policy is the mechanism by which oil price shocks are transmitted to the non-oil economy. This result is even stronger in countries where public spending is relatively important in total spending.

Click here to read the paper.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.