Why are crude oil prices high when global activity is weak?

There have been substantial increases in liquidity in recent years and real oil prices have almost returned to the high levels achieved before the Global financial crisis. Unanticipated increases in global real M2 lead to statistically significant increases in real oil prices. The cumulative impact of global real M2 on the real price of crude oil is important in the recovery of oil price over 2009 to 2011.

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Year of publication:	2012-12-01
Authors:	Ratti, Ronald A ; Vespignani, Joaquin L.
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Oil Price \| Global Liquidity

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	Q41 - Demand and Supply ; E32 - Business Fluctuations; Cycles ; E31 - Price Level; Inflation; Deflation ; Q43 - Energy and the Macroeconomy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011110293