Oil price shocks and domestic inflation in Thailand

Komain Jiranyakul

MPRA Paper from University Library of Munich, Germany

Abstract: This paper employ monthly data to examine the empirical relationship between oil price shocks and domestic inflation rate during 1993 and 2013. The results show that oil price, domestic or international, does not have the long-run impact on consumer prices. However, oil price shocks cause inflation to increase while oil price uncertainty does not cause an increase in inflation. Furthermore, inflation itself causes inflation uncertainty. The findings of this study encourage the monetary authorities to formulate a more accommodative policy to respond to oil price shocks.

Keywords: Oil shocks; inflation; bivariate GARCH; causality (search for similar items in EconPapers)
JEL-codes: E31 Q43 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-cba, nep-ene, nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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https://mpra.ub.uni-muenchen.de/71070/8/MPRA_paper_71070.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/96787/16/MPRA_paper_96787.pdf revised version (application/pdf)
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https://mpra.ub.uni-muenchen.de/109480/15/MPRA_paper_87699.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/109481/1/MPRA_paper_109481.pdf revised version (application/pdf)

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