Monetary Policy, Oil Stabilization Fund and the Dutch Disease
Jean-Pierre Allegret (),
Mohamed Tahar Benkhodja and
Additional contact information
Mohamed Tahar Benkhodja: ESSCA, School of Management
No 2018-06, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis
This paper contributes to the literature on the Dutch disease effect in a small open oil exporting economy. Specifically, our contribution to the literature is twofold. On the one hand, we formulate a DSGE model in line with the balanced-growth path theory. On the other hand, besides alternative monetary rules, the model introduces an oil stabilization fund, an oil price rule, and a fiscal rule. Our aim is to analyze to what extent the combinations between our alternative monetary rules and fiscal policy are effective to prevent a Dutch disease effect in the aftermath of a positive oil price shock. Our main findings show that the Dutch disease, through the spending effect, occurs only in the case of inflation targeting regime. An expansionary fiscal policy contributes to improve the state of the economy through its impact on the productivity of the manufacturing sector.
Keywords: Monetary Policy; Oil Stabilization Fund; Dutch disease; Oil Prices; DSGE model (search for similar items in EconPapers)
JEL-codes: E52 F41 Q40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-ene, nep-mac, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2018-06.pdf First version (application/pdf)
Working Paper: Monetary Policy, Oil Stabilization Fund and the Dutch Disease (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2018-06
Access Statistics for this paper
More papers in GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis Contact information at EDIRC.
Bibliographic data for series maintained by Patrice Bougette ().