Oil Shocks And External Balances
This paper studies the effects of demand and supply shocks in the global crude oil market on several measures of countries' external balance, including the oil and non-oil trade balances, the current account, and changes in net foreign assets (NFA) during 1975 - 2004. The authors explicitly take a global perspective. In addition to the U.S., the Euro area and Japan, they consider a number of country groups including oil exporters and middle-income oil-importing economies. They find that the effect of oil shocks on the merchandise trade balance and the current account, which depending on the source of the shock.