Economics, Econometrics and Finance
8 years ago

Energy prices unaffected by U.S. economic news, challenging common assumptions.

The Review of Economics and Statistics
Do Energy Prices Respond to U.S. Macroeconomic News? A Test of the Hypothesis of Predetermined Energy Prices
Lutz Kilian, Clara Vega

Paper Summary

Related papers

Economics, Econometrics and Finance
2 years ago

Reviving Keynesian Methodology Sparks Debate on Realistic Macroeconomic Policies.

Economic Institutions
Macroeconomic Trends
Monetary Models
Economics, Econometrics and Finance
4 years ago

Global economy redefined: International transactions crucial for understanding macroeconomic dynamics.

Econophysics
Monetary Models
Economics, Econometrics and Finance
4 years ago

New Model Predicts Economic Growth Potential for Uzbekistan

Economic Governance
Banking Finance
Macroeconomic Analysis

Energy prices do not immediately react to U.S. economic news, as believed. A study tested this by analyzing daily changes in energy prices against daily U.S. economic data releases. The results show no strong evidence of energy prices responding to economic news on a daily or monthly basis. This contradicts the idea that energy prices quickly adjust to economic updates, supporting the assumption that U.S. economic data does not directly impact monthly energy price changes.