The relationship between the price of oil and the level of economic
activity is a fundamental issue in macroeconomics. There is an
ongoing debate in the literature about whether positive oil price
shocks cause recessions in the United States (and other
oil-importing countries), and although there exists a vast
empirical literature that investigates the effects of oil price
shocks, there are relatively few studies that investigate the
direct effects of uncertainty about oil prices on the real economy.
The book uses recent advances in macroeconomics and financial
economics to investigate the effects of oil price shocks and
uncertainty about the price of oil on the level of economic
activity.
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