Abstract
Some analysts have attempted to quantify the extent to which high energy prices have adversely affected the level of prices, output, productivity, investment and other economic developments. Considerable differences exist from these different approaches, which have in turn led to different conclusions as to the appropriate policy responses to major changes in energy prices. This paper reviews the theory and evidence developed earlier, and extends the empirical analysis to include the Netherlands. The production function analysis for the United States is re-examined and extended, and the experience in six foreign nations is analyzed. The implications of the 1979-1980 energy price shock are briefly examined and monetary policy actions in 1974 and 1979-1980 are contrasted with the theoretical conclusions for all seven countries.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.