Oil Price Volatility, Macroeconomic Policy & Economic Growth

Abstract

Since oil entered the production and life of mankind, it has profoundly affected and changed the whole world. With the continuous development of society, oil has become one of the indispensable energy sources for modern industrial production and life. At the same time, petroleum, with its special commodity attribute, is closely linked with national strategic interests and is an important strategic material for all countries in the world. The fluctuation of the international oil market and the change in the oil price are pulling the development of the global economy, even contributing to the outbreak of the financial crisis. In this paper, the three major oil crises in history as a starting point, from the nature of oil to seek the international oil price fluctuations, and fluctuations of the theoretical basis to build a new theoretical analysis of international oil price fluctuations path. From the aggregate supply, aggregate demand, and other, specific aspects of the impact of international oil price fluctuations on the macroeconomy. At the same time, an analysis of China and the west monetary policy explores the national currency, monetary policy, and international crude oil price fluctuations between the relationship. Finally, the paper discusses the influence of the fluctuation of international crude oil prices on the national macro-economy, and takes China as an example, drawing the conclusion that the change in oil prices will have many influences on the national macro-economy.