The oil cycle, the Federal Reserve, and the monetary and exchange rate policies of Qatar

Abstract

Supporters of the Arab oil-exporting countries' decades-long fixed exchange rate regime argue that since, oil is traded in United States (US) dollars, pegging to the dollar is optimal.However, the weakening relationship between oil prices and the US economy in terms of JEL Classification: E32, E61, F44.Keywords: Oil price, Business cycle synchronization, Counter-cyclical monetary policy, Exchange rate regimes. * We are very grateful to Elsayed Elsamadisy for helpful advice and stimulating conversation at an early stage of the paper. We thank two anonymous reviewers for very helpful and detailed comments and suggestions. We also thank Megan Foster for very careful proofreading and numerous suggestions. The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the affiliated institutions.

The Relationship between Oil Prices and Exchange Rate: A Systematic Literature Review

“…Eryiğit (2012) Studied the dynamic relationship between energy and economic variables. Alkhater and Basher (2016) investigated the impact of oil prices on the US macroeconomic variables. Further, Habib et al (2017) studied the impact of oil prices on the macroeconomic variables in the three oil-exporting countries, Azerbaijan, Kazakhstan, and Russia.…”