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LOWER OIL PRICES AND THE UK ECONOMY
Author(s) -
Corker Bob,
Robinson Bill
Publication year - 1984
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1984.tb00596.x
Subject(s) - economics , oil price , stimulus (psychology) , exchange rate , inflation (cosmology) , monetary economics , medium term , oil production , macroeconomics , psychology , physics , theoretical physics , petroleum engineering , psychotherapist , engineering
Demand for oil remains weak, and OPEC production is running ahead of quota in most member countries, so the possibility that oil prices could fall in the near future has increased. In this Forecast Release we examine the medium‐term impact on the UK economy of lower oil prices. We find that, if the government does not intervene to protect the exchange rate, there is an immediate stimulus to output growth. The inflation rate, though, is 1–2 percentage points higher after three years.