Why are crude oil prices high when global activity is weak?

Ronald Ratti and Joaquin Vespignani

Economics Letters, 2013, vol. 121, issue 1, 133-136

Abstract: There have been substantial increases in liquidity in recent years and real oil prices have almost returned to the high levels achieved before the global financial crisis. Unanticipated increases in global real M2 led to statistically significant increases in real oil prices. The historical impact of global real M2 on the real price of crude oil is important in the recovery of oil prices over 2009 to 2011.

Keywords: Oil prices; Global liquidity; Global real M2; Global financial crisis (search for similar items in EconPapers)
JEL-codes: E31 E32 Q41 Q43 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (60)

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Working Paper: Why are crude oil prices high when global activity is weak? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:121:y:2013:i:1:p:133-136

DOI: 10.1016/j.econlet.2013.07.002

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