Template-Type: ReDIF-Article 1.0 Author-Name: John A. Tatom Title: Are There Useful Lessons from the 1990-91Oil Price Shock? Classification-JEL: F0 Pages: 129-150 Volume: Volume14 Issue: Number 4 Year: 1993 Abstract: Following Iraqs invasion of Kuwait, oil prices temporarily doubled. This paper examines the hypothesis that the U.S. economy had changed following previous oil price shocks, so that the 1990 oil price rise (and its subsequent decline) had smaller effects than previously. It also examines a related hypothesis that such a transitory oil price hike would have little or no macroeconomic effect. It surveys and rejects arguments for a reduced impact of oil price shocks and for hysteresis. The article argues that recent experience was comparable in magnitude to earlier shocks and that there were comparable macroeconomic developments and changes in the composition of output. The paper concludes with a test of the effect of energy prices on the misery index and shows that recent changes in misery are consistent with previous experience. Handle: RePEc:aen:journl:1993v14-04-a09 File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=1139 File-Format: text/html File-Restriction: Access to full text is restricted to IAEE members and subscribers.