Energy prices, inflation, and economic activity

Conference · Thu Jan 01 04:00:00 EST 1981

OSTI ID:6528425

Mork, K A ^[1]

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1. ed.

These essays encompass a wide variety of approaches to the energy market, ranging from large econometric models to more direct, innovative approaches. The large models, used for short-term forecasting and policy analysis long before the oil embargo, have been adapted here to energy price shocks and supply interruptions. The more innovative approaches, while lacking the great detail of the other models, directly address the specific economic problems of energy price shocks. The contributors trace the effects of energy price changes on inflation, unemployment, and economic growth. They find that traditional macroeconomic policies - such as personal income tax cuts, government spending programs, and expansionary monetary policies - are unsuitable for offsetting the combination of inflation and recession that follows energy price shocks. Instead, they suggest alternative measures such as payroll tax cuts and tax incentives for investment. The findings show, however, that while the short-run adjustment to energy price shocks can be eased by the proper choice of macroeconomic policy, little can be done to improve the prospects for long-term economic growth.

• OSTI ID: 6528425
• Report Number(s): CONF-7911142-
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
530100* -- Environmental-Social Aspects of Energy Technologies-- Social & Economic Studies-- (-1989)
DOCUMENT TYPES
ECONOMETRICS
ECONOMIC GROWTH
ECONOMIC IMPACT
ECONOMICS
EMPLOYMENT
ENERGY POLICY
ENERGY SHORTAGES
ENERGY SUPPLIES
FINANCIAL INCENTIVES
FORECASTING
GOVERNMENT POLICIES
INFLATION
INVESTMENT
MARKET
NORTH AMERICA
PRICES
PROCEEDINGS
SHORTAGES
TAXES
USA