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

Olumuyiwa Adedeji, Erik Roos, Sohaib Shahid and Ling Zhu

No 2019/304, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; oil price; price; federal funds rate; GCC.; Growth; Gulf Corporation Council; Spillovers; U.S. Monetary Policy; liquidity fluctuation; monetary policy spillover; GCC country; interaction term; Oil prices; Real interest rates; Central bank policy rate; Liquidity; Global (search for similar items in EconPapers)
Pages: 15
Date: 2019-12-27
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Citations: View citations in EconPapers (1)

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