Do Oil Shocks Matter for Inflation Rate in Russia: An Empirical Study of Imported Inflation Hypothesis

Authors

  • Alexander Bass Financial university under the Government of Russian Fedeariton

Abstract

In this article we aim to assess the impact of world oil prices shocks on inflation dynamics in Russia. Based on the data for the period 2010-2017 for Russia we explore the relationship between world oil prices (Brent), exchange rate and Russian consumption price index using a VEC framework. For detecting the casual relationship, Granger causality test is applied. The results of the study show that oil prices, exchange rate and consumer inflation in Russia are cointegrated in the long-run. The results of the Wald test in the short run show that there is a statistically significant relationship between changes in world oil prices, exchange rate and CPI.Keywords: oil prices, inflation, exchange rate, vector error correctionJEL Classifications:  E31, F31, Q41DOI: https://doi.org/10.32479/ijeep.7359 

Downloads

Download data is not yet available.

Author Biography

Alexander Bass, Financial university under the Government of Russian Fedeariton

PhD in Economics, Department of financial markets and banks, Associate Professor

Downloads

Published

2019-02-14

How to Cite

Bass, A. (2019). Do Oil Shocks Matter for Inflation Rate in Russia: An Empirical Study of Imported Inflation Hypothesis. International Journal of Energy Economics and Policy, 9(2), 288–294. Retrieved from https://econjournals.com.tr/index.php/ijeep/article/view/7359

Issue

Vol. 9 No. 2 (2019)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.