The Macroeconomic Effects of Oil Shocks in Three Latin American Economies

• Alarcon Galarza, Juan Carlos ; Molero García, Juan Carlos ^[1] ; Pérez de Gracia, Fernando ^[1]
  1. [1] Universidad de Navarra

     Universidad de Navarra

     Pamplona, España

     
• Localización: Cuestiones Económicas, ISSN-e 2697-3367, Vol. 26, Nº. 2, 2016 (Ejemplar dedicado a: Revista Cuestiones Económicas; Autores: Juan Carlos Alarcon Galarza, Juan Carlos Molero García, Fernando Pérez de Gracia), págs. 24-24
• Idioma: inglés
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• Resumen

  • In this paper we study the impact of oil price shocks on real economic activity and inflation rates in three Latin American economies (Brazil, Colombia and Peru)  using a Vector AutoRegressive (VAR) model over the period 1991:M01-2014:M01. We also consider different oil shock specification. We find a strong and prolonged increase in inflation in Brazil after al oil price shock and negative effect with respect to economic growth. We find less significant results for Colombia and Peru that can be explained by the distorted pass-through of oil price shocks to domestic prices.