Data and methods for understanding the link between oil prices and exchange rates

Joscha Beckmann, Robinson Kruse‐Becher (both FernUni Hagen) and Robert Czudaj (TU Freiberg) have jointly submitted an application for third-party funding to the internationally refereed journal Energy Economics.

The academic literature on the relationship between exchange rates and oil prices attracts great interest from policymakers. The relevant literature is very comprehensive and covers a variety of data, methods and models.

The project has two goals: On the one hand, the project provides rich information that allows researchers to identify relevant data sources and econometric methods for estimations which contribute to understanding the relationship between exchange rates and oil prices. This part of the project will reflect the current state of the broader literature. The second part of the project will provide new datasets based on news coverage on oil and foreign exchange markets. The idea is to allow practitioners and researchers to recognize the intensity and nature of the news coverage that relates to both markets. Such information is useful for both researchers and practitioners, given that reporting has the potential to influence expectations and provide future signals about price movements.

The share of funding at the FernUniversität amounts to 35,000 euros.

CESA | 02.11.2023