Oil price shocks drive inflation, stock market, and gold price fluctuations.
Oil price shocks have a big impact on the economy. This study looked at how different factors like inflation, stock markets, and gold prices react to changes in oil prices. They found that oil prices affect these variables, as well as interest rates in the short term. Oil prices, stock markets, and gold prices move together. Changing interest rates can help control inflation caused by oil price shocks.