Nonlinearities in the Relationship Between Oil Price Changes and Movements in the Norwegian Krone

dc.contributor.author	ter Ellen, Saskia
dc.date.accessioned	2018-07-26T07:19:47Z
dc.date.available	2018-07-26T07:19:47Z
dc.date.issued	2016
dc.identifier.isbn	978-82-7553-940-1
dc.identifier.issn	1504-2596
dc.identifier.uri	http://hdl.handle.net/11250/2506529
dc.description.abstract	Anecdotal evidence as well as previous empirical analysis indicates that the relation between oil price changes and movements in the Norwegian krone is not stable over time. We can observe that there is no or only a weakly significant correlation between oil price changes and Norwegian krone depreciation in some periods, but a strong correlation in other periods. This memo proposes some explanations for these nonlinearities and summarizes the results of empirical tests conducted to investigate the nonlinearities in the oil price-Norwegian krone relation. It is found that the Norwegian krone reacts stronger to oil price changes when these are larger than average, and that the most relevant threshold level for the 2014 price drop was USD 75.	nb_NO
dc.language.iso	eng	nb_NO
dc.publisher	Norges Bank	nb_NO
dc.relation.ispartofseries	Staff Memo;18/2016
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no	*
dc.title	Nonlinearities in the Relationship Between Oil Price Changes and Movements in the Norwegian Krone	nb_NO
dc.type	Working paper	nb_NO
dc.subject.nsi	VDP::Samfunnsvitenskap: 200::Økonomi: 210	nb_NO
dc.source.pagenumber	11	nb_NO

Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal