An Empirical Note on the Inflation Impact of the Price of Imported Crude Oil: The Case of Germany

Richard Cebula (), Yassaman Saadatmand and Yvonne Piccone

MPRA Paper from University Library of Munich, Germany

Abstract: This study empirically investigates whether the assumption of the monetary authority in pre-2000 Germany that rising prices of imported crude oil would lead to domestic inflation in Germany had validity. In a model where unemployment rate changes, money stock growth, and wage growth are all allowed for, OLS estimation reveals that although the inflation rate in Germany typically is not sensitive to increasing prices on imported crude oil, crude oil price "shocks" of 50 percent or more during any calendar year have in the past led to significant domestic inflation for the German economy.

Keywords: inflation; price of imported crude oil; oil price shocks; Germany (search for similar items in EconPapers)
JEL-codes: E31 E51 E52 (search for similar items in EconPapers)
Date: 2002-01-07
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Citations: View citations in EconPapers (3)

Published in Rivista Internazionale di Scienze Economiche e Commerciali 4.49(2002): pp. 531-537

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50887

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