TY - JOUR
T1 - Monetary policy and oil price fluctuations following the subprime mortgage crisis
AU - Yoshino, Naoyuki
AU - Taghizadeh-Hesary, Farhad
N1 - Publisher Copyright:
Copyright © 2014 Inderscience Enterprises Ltd.
PY - 2014/12/1
Y1 - 2014/12/1
N2 - This study examines how monetary policy affected crude oil prices after the subprime mortgage crisis. Our earlier research found that easy monetary policy had a significant impact on energy prices during the period of 1980-2011. This paper finds that after the subprime mortgage crisis the weaker exchange rate of the US dollar caused by the country's quantitative easing pushed oil prices in US dollars upward over the period of 2009-2012, by causing investors to invest in the oil market and other commodity markets while the world economy was in recession in this period. This trend had the effect of imposing a longer recovery time on the global economy, as oil has been shown to be one of the most important production inputs.
AB - This study examines how monetary policy affected crude oil prices after the subprime mortgage crisis. Our earlier research found that easy monetary policy had a significant impact on energy prices during the period of 1980-2011. This paper finds that after the subprime mortgage crisis the weaker exchange rate of the US dollar caused by the country's quantitative easing pushed oil prices in US dollars upward over the period of 2009-2012, by causing investors to invest in the oil market and other commodity markets while the world economy was in recession in this period. This trend had the effect of imposing a longer recovery time on the global economy, as oil has been shown to be one of the most important production inputs.
KW - Exchange rate
KW - Monetary policies
KW - Oil prices
KW - Subprime mortgage crisis
UR - http://www.scopus.com/inward/record.url?scp=84920415921&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84920415921&partnerID=8YFLogxK
U2 - 10.1504/IJMEF.2014.066482
DO - 10.1504/IJMEF.2014.066482
M3 - Article
AN - SCOPUS:84920415921
VL - 7
SP - 157
EP - 174
JO - International Journal of Monetary Economics and Finance
JF - International Journal of Monetary Economics and Finance
SN - 1752-0479
IS - 3
ER -