TY  - JOUR
AU  - Lee,Junhee
AU  - Song,Joonhyuk
TI  - Nature of Oil Price Shocks and Monetary Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15306
PY  - 2009
Y2  - September 2009
UR  - http://www.nber.org/papers/w15306
L1  - http://www.nber.org/papers/w15306.pdf
N1  - Author contact info:
Junhee Lee
Yeungnam University
School of International Economics and Business
214-1 Dae-Dong
Kyeongsan-Si
Kyeongsangbuk-Do
E-Mail: lee1838@ynu.ac.kr

Joonhyuk Song
Korea Development Institute
P.O. Box 113
Cheongnyang, Seoul 130-012
Korea
E-Mail: jhsong@hufs.ac.kr
M3  - presented at "East Asian Seminar on Economics", June 26-27, 2009
AB  - We investigate the nature of oil price shocks to the Korean economy in recent years and find that the recent hike in oil price is induced by the increase in oil demand in contrast to the previous years when oil price run-up is mostly from supply disruptions. We also study how monetary responses to oil price shocks affect economic stability and find that an accommodative policy yields more stable outcomes.
ER  -