Oil Price and the Dollar
DOI :
https://doi.org/10.15173/esr.v15i2.508Mots-clés :
oil prices, effective exchange rate, net foreign asset position, co-integration, causality, error correction model,Résumé
The aim of this paper is to test whether there is a stable long-term relationship between oil prices and the U.S. effective exchange rate, expressed in real terms. To this end, we perform co-integration and causality tests between the two variables. Our results show that causality runs from oil prices to the exchange rate. Moreover, as we investigate the channels through which oil prices affect the dollar exchange rate, we find out that the link between the two variables is transmitted through the U.S. net foreign asset position.
Téléchargements
Publié-e
Numéro
Rubrique
Licence
Rights for Authors
As further described in our submission agreement (the Submission Agreement), in consideration for publication of the article, the authors assign to Energy Studies Review all copyright in the article, subject to the expansive personal--use exceptions described below.
Attribution and Usage Policies
Reproduction, posting, transmission or other distribution or use of the article or any material therein, in any medium as permitted by a personal-use exemption or by written agreement of Energy Studies Review, requires credit to Energy Studies Review as copyright holder (e.g., Energy Studies Review © 2014).
Personal-use Exceptions
The following uses are always permitted to the author(s) and do not require further permission from DigitalCommons@McMaster provided the author does not alter the format or content of the articles, including the copyright notification:
- Storage and back-up of the article on the author's computer(s) and digital media (e.g., diskettes, back-up servers, Zip disks, etc.), provided that the article stored on these computers and media is not readily accessible by persons other than the author(s);
- Posting of the article on the author(s) personal website, provided that the website is non-commercial;
- Posting of the article on the internet as part of a non-commercial open access institutional repository or other non-commercial open access publication site affiliated with the author(s)'s place of employment (e.g., a Phrenology professor at the University of Southern North Dakota can have her article appear in the University of Southern North Dakota's Department of Phrenology online publication series); and
- Posting of the article on a non-commercial course website for a course being taught by the author at the university or college employing the author.
People seeking an exception, or who have questions about use, should contact the editors.
