The Economist, Opinion:
Oil, still at its mercy. “At the current price, oil may be incapable of causing mass unemployment, double-digit inflation, extraordinary political turmoil and losses of global economic welfare on a scale hitherto associated with total war—but just how reassuring is that? If oil is only $10 a barrel higher than it would otherwise have been, and stays there a while, prices in general will rise, output and incomes will be reduced, and unemployment, at least for a while, will be raised. That vicious combination of higher inflation and lower growth—stagflation, to recall a term from the 1970s—is about the worst scenario an economic policy-maker can contemplate.”
Comments:
There are no comments at this time for this entry.
Commenting is not available in this weblog entry.
