Causes and Consequences of the Oil Shock of 2007-08

  title={Causes and Consequences of the Oil Shock of 2007-08},
  author={J. Hamilton},
  journal={Macroeconomics: Prices},
  • J. Hamilton
  • Published 2009
  • Economics
  • Macroeconomics: Prices
This paper explores similarities and differences between the run-up of oil prices in 2007-08 and earlier oil price shocks, looking at what caused the price increase and what effects it had on the economy. Whereas historical oil price shocks were primarily caused by physical disruptions of supply, the price run-up of 2007-08 was caused by strong demand confronting stagnating world production. Although the causes were different, the consequences for the economy appear to have been very similar to… Expand
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