Explosive Oil Prices
Sep 6, 2013: The global oil market is regularly subject to strong shocks that include, for example, the two oil crises, the oil price increase in the wake of the Gulf War of 1990/1991, as well as the soaring of the oil price to over 140 US dollars per barrel in 2008. In CESifo Working Paper No. 4376 Dr. Marc Gronwald looks at the question of which periods the trends in oil prices can be described as "explosive". He analyses the reasons for price increase in the individual phases and shows that important economic decisions were influenced by the explosive behaviour of oil prices. Moreover, the Ifo expert highlights the role of speculative demand shocks, which have been paid little attention to date.