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How important are real interest rates for oil prices?

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Figure

Figure 4 plots the impulse responses of the ex-ante and ex-post real interest rates when the time tomaturity is one month.17 When compared with the top row of Figure 3, Figure 4 shows the termof the real interest rate is important in determining the respon
Figure 1: Ex-ante and ex-post U.S. real interest rates (rintacquisition costs of crude oil () and log of real U.S
Figure 2: Responses (percent change) of the baseline simulation, 1975-2011M06. The dashed linesare +/- two standard errors.
Figure 4: Responses (percent change) of the real oil price to a one standard deviation innovationin the 1-month real interest rate, 1975-2011M06
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