This Is AuburnElectronic Theses and Dissertations

Inflationary Effects of Oil Price Fluctuations in the United States and Canada




Vick, Christopher

Type of Degree





The goal of this thesis is to investigate the inflationary effects of shocks in oil prices with a specific interest in commodity currency markets. The model includes a comparison between the United States and Canada. The individual effects of exchange rate, Consumer Price Index, Gross Domestic Product and oil price are observed. The study employs a structural vector autoregressive process (SVAR) that returns impulse response functions and variance decomposition analysis using a Sims choleski decomposition. The model is used to provide a comparison between the two countries and investigates possible explanations for differences such as exchange rate pass through. A preview into the findings indicates a significant difference in inflationary response between the two countries with incomplete findings for a possible explanation for this result.