Three Essays on Macroeconomics, Oil Price Fluctuations, and Credit Risks in Banking Systems
Alodayni, Saleh . 2016
This dissertation is a collection of theoretical and empirical essays on oil price fluctuations, macroeconomics, and credit risks in banking systems. The dissertation consists of three papers organized as chapters: i) Chapter 1 evaluates the optimal monetary policy response to the underlying causes of oil price fluctuations under a Dynamic Stochastic General Equilibrium (DSGE) framework for small open oil-importing economies, ii) Chapter 2 examines the empirical dynamic effects of underlying shocks of oil price fluctuations on monetary policy response and macroeconomic aggregates across oil-exporting and oil-importing open economies, and iii) Chapter 3, however, examines the effect of the recent oil price slumps on credit risks and banking instability across Gulf Cooperation Council (GCC) region. Chapter 3 further examines the macro-financial linkages between the real economy and GCC banking systems.
The project (Pilot) is funded by Harvard Kennedy School with the support of Ministry of Labor and Social Development.
The Gulf Cooperation Council (GCC) countries are expected to undergo a prolonged period of fiscal adjustments as oil price continues to decline. This study examines how profits of GCC banks are…