Some internal and external effects of the rise in the price of oil

Authors

  • L. IZZO
  • L. SPAVENTA

DOI:

https://doi.org/10.13133/2037-3643/11447

Keywords:

Oil, price increases, deflationary effect, policy, international payments problem

Abstract

The work looks at the rise in the price of crude oil, elucidating some economic implications of the issues which a large number of economies will have to face in the near future. The authors first consider the primary impact of the rise in the price of crude on the economy of an importing country considered in isolation. A simple model shows a very sizeable deflationary effect which, to a large extent, can only be offset as a result of deliberate policy decisions. It is also shown how each importing country’s decisions in this matter affect the situation of all others. Some aspects of the international payments problem are then dealt with.

 

JEL: E31, Q41, Q43

Downloads

Published

2013-12-30

How to Cite

IZZO, L., & SPAVENTA, L. (2013). Some internal and external effects of the rise in the price of oil. PSL Quarterly Review, 26(108). https://doi.org/10.13133/2037-3643/11447

Issue

Vol. 26 No. 108 (1974)

Section

Editorial

License

 
 
Licenza Creative Commons
 
All material in this website and every article published by the Review are licensed under a Creative Commons Attribution - Non commercial - No derivates 4.0 International license.
The authors who publish on this journal maintain all rights on their works without any restrictions.