Oil price shocks: A comparative study on the impacts of oil price movements in Malaysia and the UK economies

摘要: The study investigates the relationship between changes in crude oil prices and Malaysia UK macro-economy. A multivariate VAR analysis is carried out among five key macroeconomic variables: real gross domestic product, short term interest rate, effective exchange rates, long rate money supply. From model, impulse response functions reveal that price movements cause significant reduction aggregate output increase rate. variance decomposition shows significantly contribute to variability of economy while shocks are found have effects on money supply economy. Despite these macro-econometric results, caution must be exercised formulating energy policies since future upcoming will not same as what happened past. Explorations development practicable alternatives imported fuel cushion from repercussions shocks.