Global Implications of Lower Oil Prices

Author/Editor: Aasim M. Husain ; Rabah Arezki ; Peter Breuer ; Vikram Haksar ; Thomas Helbling ; Paulo A. Medas ; Martin Sommer
Publication Date: July 14, 2015
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Summary: The sharp drop in oil prices is one of the most important global economic developments over the past year. The SDN finds that (i) supply factors have played a somewhat larger role than demand factors in driving the oil price drop, (ii) a substantial part of the price decline is expected to persist into the medium term, although there is large uncertainty, (iii) lower oil prices will support global growth, (iv) the sharp oil price drop could still trigger financial strains, and (v) policy responses should depend on the terms-of-trade impact, fiscal and external vulnerabilities, and domestic cyclical position.
Series: Staff Discussion Notes. No. 15/15
Subject(s): Oil prices | Credit risk | Financial sector | Fiscal adjustment | Monetary policy | Exchange rate regimes | Emerging markets | Developing countries

Publication Date: July 14, 2015
ISBN/ISSN: 9781513532417 Format: Paper
Stock No: SDNEA201515 Pages: 42
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