Oil price shocks drive real exchange rate fluctuations in G7 countries.
The study looked at how oil price changes affect the value of money in G7 countries. They found that when oil prices go up, the money in countries that sell oil gets stronger, while the money in countries that buy oil gets weaker. They also discovered that changes in how much oil is wanted have the biggest impact on money value, while changes in how much oil is available have the smallest impact. Lastly, they found that some countries change their money policies in response to oil and money value changes, but not all countries do.