Oil price shocks and the US economy: What makes the latest oil price episode different?

This paper distinguishes different periods in the relationship between oil price shocks, economic growth, and inflation for the US economy. Focusing on the latest period, covering mainly the noughties, a change is found in the exogeneity pattern associated with recent oil price episodes. A significant effect of GDP growth on oil price movements is identified, while there is no evidence of any influence of the latter on either GDP growth or inflation found.