In your opinion, what does this blog need more of?

Monday, January 25, 2016

Can lower oil prices cause a recession?



Econbrowser - no.

However, they can cause a sector-specific or sector-related recession, as it takes time for capital and labour to be redeployed to more worthwhile areas of production.

But the net effect on oil consumers (people and corporations) should be positive outside of sector-related industries.


No comments:

Post a Comment