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

Author/Editor:

Olumuyiwa S Adedeji ; Erik Roos ; Sohaib Shahid ; Ling Zhu

Publication Date:

December 27, 2019

Electronic Access:

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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.

Series:

Working Paper No. 2019/304

Subject:

English

Publication Date:

December 27, 2019

ISBN/ISSN:

9781513519357/1018-5941

Stock No:

WPIEA2019304

Pages:

15

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