Oil Prices, Monetary Policy, and Counterfactual Experiments

Carlstrom, Charles T.; Fuerst, Timothy S.

doi:10.26509/frbc-wp-200510

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Working Paper

Oil Prices, Monetary Policy, and Counterfactual Experiments

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Recessions are associated with both rising oil prices and increases in the federal funds rate. Are recessions caused by the spikes in oil prices or by the sharp tightening of monetary policy? This paper discusses the difficulties in disentangling these two effects.

10.01.2005WP 05-10DOI 10.26509/frbc-wp-200510

Suggested Citation

Carlstrom, Charles T., and Timothy S. Fuerst. 2005. “Oil Prices, Monetary Policy, and Counterfactual Experiments.” Federal Reserve Bank of Cleveland, Working Paper No. 05-10. https://doi.org/10.26509/frbc-wp-200510

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