Has Oil Lost the Capacity To Shock? - speech by David Walton

Speaking at the University of Warwick Graduates’ Association Senior Directors’ Forum, David Walton, member of the Monetary Policy Committee, said that the UK economy appears to have emerged relatively unscathed from a doubling in oil prices since the end of 2003.
Published on 23 February 2006

For Mr Walton, in explaining this fairly benign outcome relative to previous episodes of rising oil prices, “the size and nature of the oil price shock are important. But so too are the mechanisms by which the shock gets propagated through the economy. Among other things, this depends on the state of the economy at the time the shock hits, the extent of rigidities in the economy, the monetary policy framework and the monetary policy response.”

PDFPress release

 


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