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About Relationship Between Energy Prices Monetary Policy PDF
This document summarizes a research article that examines the relationship between energy prices, monetary policy, and inflation in South Asian economies. It discusses how monetary tightening aimed at reducing inflation could be counterproductive if high energy prices are pushing up costs and reducing aggregate supply. The article explores the existence of cost side effects of monetary policy, the role of international oil prices in domestic inflation, and the implications of monetary policy when there is cost-push inflation from high energy prices. It argues that monetary tightening in this scenario could reduce output while increasing inflation, rather than reducing it as intended, because the cost channel effects would dominate over demand channel effects.
Detailed Information
| Author: | ['Muhammad Talha'] |
|---|---|
| Publication Year: | 2020 |
| Pages: | 17 |
| Language: | English |
| Format: | |
| Price: | FREE |
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