Investigating the effect of oil price fluctuations on macroeconomic variables

Nowdays, oil plays an important role in the formation of the economy, politicaldevelopment and industrial economy. In fact, oil and the income from itsproduction and sale have greatly affected the performance and efficiency of theentire economy. And therefore oil revenues have a strategic role in the structure ofIran's economy. One of the important issues in the oil sector is the issue of priceand price fluctuations; So that any unexpected increase or decrease in its priceleads to a change in oil revenues, which in turn directly affects the economy ofcountries and if the correct economic policies are not applied; It leads to economiccrisis and imbalances. And it can be said that oil price shocks lead to anirreversible reduction in investment, reducing the role of technology shocks incyclical business models and changing the natural rate of unemployment. Also, theprice of oil and its fluctuations have always played a key role in determining theincome, economic policies of the government, and savings in Iran's economy sincethe beginning of the ۱۹۵۰s.

Keywords:

Oil shocks , oil price fluctuations , economic growth , inflation , Dutch growth