Macroeconomic Implications of Oil Price Hike

Abstract:     
One of the significant developments affecting the global economy in the current scenario is the phenomenal increase in the crude oil prices. Crude oil is an import raw material for manufactured goods, thus an unprecedented increase in the price of oil is bound to threaten the economy with inflationary tendencies. It is left to the policy makers to design suitable policy prescriptions so that the oil price hike does not hamper the economic growth performance of the nation.

This paper delves into the possible conflicts which policy makers experience while framing policies for curbing the adverse impact of oil price hike.

Number of Pages in PDF File: 13

Keywords: Key Words: Budget Deficit, Stagflation, oil bonds

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