The Macroeconomic Effects of Oil Shocks in Three Latin American Economies

  1. Alarcon Galarza, Juan Carlos
  2. Molero García, Juan Carlos 1
  3. Pérez de Gracia, Fernando 1
  1. 1 Universidad de Navarra
    info

    Universidad de Navarra

    Pamplona, España

    ROR https://ror.org/02rxc7m23

Journal:
Cuestiones Económicas

ISSN: 2697-3367

Year of publication: 2016

Issue Title: Revista Cuestiones Económicas; Autores: Juan Carlos Alarcon Galarza, Juan Carlos Molero García, Fernando Pérez de Gracia

Volume: 26

Issue: 2

Pages: 24-24

Type: Article

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Abstract

In this paper we study the impact of oil price shocks on real economic activity and inflation rates in three Latin American economies (Brazil, Colombia and Peru)  using a Vector AutoRegressive (VAR) model over the period 1991:M01-2014:M01. We also consider different oil shock specification. We find a strong and prolonged increase in inflation in Brazil after al oil price shock and negative effect with respect to economic growth. We find less significant results for Colombia and Peru that can be explained by the distorted pass-through of oil price shocks to domestic prices.

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