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This paper examines the changing relationship between oil price changes and inflation rates across three periods (pre-1986, 1987-1998, post-1999) in 29 countries. It finds that most countries show an asymmetric response of inflation to oil price increases and decreases in the long run, but a nearly linear relationship in the shorter periods. The immediate impact of oil price changes on inflation is generally larger than the lagged impacts, and the cumulative effect of an oil price increase is larger than a

Author

Ain Nsf

Language

EN