Why don’t oil shocks cause inflation? Evidence from disaggregate inflation data

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dc.contributor.author Bachmeier, Lance J.
dc.contributor.author Cha, Inkyung
dc.date.accessioned 2014-07-29T20:02:12Z
dc.date.available 2014-07-29T20:02:12Z
dc.date.issued 2014-07-29
dc.identifier.uri http://hdl.handle.net/2097/18159
dc.description.abstract This paper uses disaggregate U.S. inflation data to evaluate explanations for the breakdown of the relationship between oil price shocks and consumer price inflation. A data set with measures of inflation, energy intensity, labor intensity, and sensitivity to monetary policy is constructed for 97 sectors that make up core CPI inflation. A comparison of the 1973–85 and 1986–2006 time periods reveals that substitution away from energy use in production and monetary policy were both important, with approximately two-thirds of the change in response of inflation to oil shocks being due to reduced energy usage, and one-third to monetary policy. We find no evidence that other factors, such as changes in wage rigidities or changes in the persistence of oil shocks, played a role. en_US
dc.language.iso en_US en_US
dc.relation.uri http://onlinelibrary.wiley.com/doi/10.1111/j.1538-4616.2011.00421.x/full en_US
dc.rights This is the peer reviewed version of the following article: Bachmeier, L., & Cha, I. (2011). Why don’t oil shocks cause inflation? Evidence from disaggregate inflation data. Journal of Money, Credit and Banking, 43(6), 1165-1183., which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/j.1538-4616.2011.00421.x/full en_US
dc.subject Inflation en_US
dc.subject Price en_US
dc.subject Oil shock en_US
dc.subject Energy intensity en_US
dc.subject Monetary policy en_US
dc.subject Labor intensity en_US
dc.subject Disaggregate en_US
dc.subject Great Inflation en_US
dc.title Why don’t oil shocks cause inflation? Evidence from disaggregate inflation data en_US
dc.type Article (author version) en_US
dc.date.published 2011 en_US
dc.citation.doi doi:10.1111/j.1538-4616.2011.00421.x en_US
dc.citation.epage 1183 en_US
dc.citation.issue 6 en_US
dc.citation.jtitle Journal of Money, Credit and Banking en_US
dc.citation.spage 1165 en_US
dc.citation.volume 43 en_US
dc.contributor.authoreid lanceb en_US
dc.contributor.authoreid icha en_US


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