implications of Macroeconomic policies during periods of oil crisis in West Africa.
Causes of Oil Crises
Ensuing years of comparative price stability at roughly $100 - $115 per gallon, oil prices sharply declined from June 2014. The deterioration in oil prices was substantial in comparison to preceding periods of oil price decreases in the course of the past 30 years, but not unparalleled. The causes linked to the oil crises are both short-term and long-term. These comprise of numerous years of major rising surprises in oil supply, descending surprises in the demand for oil, winding down of geopolitical risks that had endangered production, alteration in OPEC policy aims, and an… Continue Reading...
the traditional marginal policy to the negative interest rate policy to address the macroeconomic challenges and achieving price stability. The major goals for introducing the negative interest rates are to counter low inflation rates, and addressing currency appreciation pressures. Some central banks introduce negative interest rates to reduce the cost of holding excess reserves and allowing the reserve to pass through money markets. For example, Japan and Eurozone introduced the negative interest rates to anchor inflation expectation and address price stability. In Denmark, the goal is to counter exchange rate pressures and safe haven inflows. However, Switzerland objective's for introducing negative interest rate is to reduce deflationary… Continue Reading...