Oil Prices and Exchange Rates

Review of International Economics, January 29, 1998

Posted: 30 Jan 1998

See all articles by Robert A. Amano

Robert A. Amano

Bank of Canada & CREFE

Simon van Norden

HEC Montreal - Department of Finance; CIRANO; University of Montreal - Center for Interuniversity Research in Econometrics

Abstract

We document a robust and interesting relationship between the real domestic price of oil and real effective exchange rates for Germany, Japan and the United States. We also offer an explanation why the real oil price captures exogenous terms of trade shocks, and why such shocks could be the most important factor determining real exchange rates in the long run.

JEL Classification: F31

Suggested Citation

Amano, Robert A. and van Norden, Simon, Oil Prices and Exchange Rates. Review of International Economics, January 29, 1998. Available at SSRN: https://ssrn.com/abstract=71768

Robert A. Amano (Contact Author)

Bank of Canada & CREFE ( email )

234 Wellington Street
Ottawa, Ontario K1A 0G9
Canada
613-782-8827 (Phone)
613-782-7163 (Fax)

Simon Van Norden

HEC Montreal - Department of Finance ( email )

3000 Chemin de la Cote-Sainte-Catherine
Montreal, Quebec H3T 2A7
Canada
514-340-6781 (Phone)
514-340-5632 (Fax)

HOME PAGE: http://svannorden.org

CIRANO ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

HOME PAGE: http://svannorden.org

University of Montreal - Center for Interuniversity Research in Econometrics ( email )

C.P. 6128, Succursale Centre-ville
Montreal, Quebec H3C 3J7
Canada

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