IMF Working Papers

U.S. Monetary Policy Spillovers to GCC Countries: Do Oil Prices Matter?

ByOlumuyiwa S Adedeji, Erik Roos, Sohaib Shahid, Ling Zhu

December 27, 2019

More Formats on IMF eLibrary
Order a Print Copy

Preview Citation

Format: Chicago

Olumuyiwa S Adedeji, Erik Roos, Sohaib Shahid, and Ling Zhu. "U.S. Monetary Policy Spillovers to GCC Countries: Do Oil Prices Matter?", IMF Working Papers 2019, 304 (2019), accessed 12/10/2025, https://doi.org/10.5089/9781513519357.001

Export Citation

  • ProCite
  • RefWorks
  • Reference Manager
  • BibTex
  • Zotero
  • EndNote

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper provides empirical evidence that the size of the spillovers from U.S. monetary policy to non-oil GDP growth in the GCC countries depends on the level of oil prices. The potential channels through which oil prices could affect the effectiveness of monetary policy are discussed. We find that the level of oil prices tends to dampen or amplify the growth impact of changes in U.S. monetary policy on the non-oil economies in the GCC.

Subject: Asset and liability management, Central bank policy rate, Financial sector policy and analysis, Financial services, Liquidity, Oil prices, Prices, Real interest rates, Spillovers

Keywords: Central bank policy rate, federal funds rate, GCC country, GCC., Global, Growth, Gulf Corporation Council, interaction term, Liquidity, liquidity fluctuation, monetary policy spillover, oil price, Oil prices, price, Real interest rates, Spillovers, U.S. Monetary Policy, WP

You May Also Be Interested In...

Development Committee: The Managing Director's Written Statement

10/20/2025

The Managing Director's Global Policy Agenda, Fall 2025: Navigating a World In Transition

10/16/2025

Reforming Energy Subsidies in the Arab Region

10/9/2025

A Stocktaking of The Current International Architecture for Resolving Sovereign Debt Involving Private Sector Creditors

10/7/2025

Vietnam: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Vietnam

10/3/2025