Provided by: International Monetary Fund
Date Added: May 2007
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.