Abstract
In this paper, we build a new Keynesian dynamic stochastic general equilibrium (DSGE) model, and apply it to explore the macroeconomic effects of oil-price shocks under alternative energy usages and monetary policy rules. Using Taiwanese data, we calibrate the model parameters and numerically solve the model. Our results suggest that if the household consumption of energy is omitted, the impact of oil-price shocks on the economy diminishes significantly. The results also suggest that the macroeconomic effects of oil-price shocks depend on the setting of monetary policy rules.