01890cas a2200265 a 4500 AALejournalIMF006674 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455202201 1018-5941 BD-DhAAL BD-DhAAL Pant, Malika. Peaks, Spikes, and Barrels : Modeling Sharp Movements in Oil Prices / Malika Pant, Martin Muhleisen, Alun Thomas. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (17 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Global oil markets were roiled by sharp price swings in 2008, and economists are still divided over the reasons for the unusual volatility. Those emphasizing fundamentals point to inelastic supply and demand curves, others view the phenomenon mostly as a result of financial investors flocking into commodity markets. This paper attempts to infer the strength of these competing hypotheses, using a simultaneous equation model that enables us to undertake a separate analysis of supply and demand factors. The model broadly captures both the surge and subsequent fall in prices, with a particularly strong impact of demand factors. The model captures a strong effect of a measure for global liquidity but does not find support for a speculative motive. Mode of access: Internet Muhleisen, Martin. Thomas, Alun. IMF Working Papers; Working Paper ; No. 2010/186 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/186/001.2010.issue-186-en.xml IMF e-Library