01971cas a2200253 a 4500 AALejournalIMF007326 230101c9999 xx r poo 0 0eng d 5.00 USD 9781462305254 1018-5941 BD-DhAAL BD-DhAAL Rasmussen, Tobias. Oil Shocks in a Global Perspective : Are they Really That Bad? / Tobias Rasmussen, Agustin Roitman. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (29 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 Using a comprehensive global dataset, we outline stylized facts characterizing relationships between crude oil prices and macroeconomic developments across the world. Approaching the data from several angles, we find that the impact of higher oil prices on oil-importing economies is generally small: a 25 percent increase in oil prices typically causes GDP to fall by about half of one percent or less. While cross-country differences in impact are found to depend mainly on the relative size of oil imports, we also show that oil price shocks are not always costly for oil-importing countries: although higher oil prices increase the import bill, there are partly offsetting increases in external receipts. We provide a small open economy model illustrating the main transmission channels of oil shocks, and show how the recycling of petrodollars may mitigate the impact. Mode of access: Internet Roitman, Agustin. IMF Working Papers; Working Paper ; No. 2011/194 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/194/001.2011.issue-194-en.xml IMF e-Library