How does the European Central Bank react to oil prices?

Guillaume L'Oeillet (1) , Julien Licheron (2)

1 IREA - Institut de Recherche sur les Entreprises et les Administrations
2 CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development

Monetary policy may constitute a short-term explanation of the non-linearity in the relationship between oil prices and output. The role of oil prices in the ECB reaction is thus investigated with an extended Taylor rule including several oil prices indicators.

Mots clés: Oil prices; monetary policy; nonlinearity

Domaines: Economies et finances

Guillaume L'Oeillet, Julien Licheron. How does the European Central Bank react to oil prices?. Economics Letters, 2012, 116 (3), pp.445-447. ⟨10.1016/j.econlet.2012.04.035⟩. ⟨halshs-01141297⟩