Open access
Author
Date
2003-08Type
- Working Paper
ETH Bibliography
yes
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Abstract
This paper examines the macroeconomic effects of an oil price shock in a small open industrial economy without oil resources, namely, Switzerland. First, we test whether oil price shocks Granger-cause Swiss macroeconomic variables, and use a medium-scale macroeconometric model to track the effects of an oil price shock. Our estimates show that large increases in oil prices lead to a rather small decline in Swiss real GDP. Furthermore, there is no permanent pass-through effect via ‘core inflation’. Oil price shocks also adversely affect Swiss exports, but imports also shrink and lessen the overall impact on real GDP growth. Show more
Permanent link
https://doi.org/10.3929/ethz-a-004605486Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichOrganisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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ETH Bibliography
yes
Altmetrics