Is it true that the oil price crash did not translate into higher consumption?
This graph below tells the story. Starting from Q2 2014 when the price of WTI crude was $105 (green line). You can see that Personal Consumption Expenditures (blue line) rose by an additional $353 billion, cumulative, over the ensuing four quarters.
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The reddish brown line is Non-Residential Private Domestic Investment. Even that rose, though not by much. (Oil effect.)
The economy grew more slowly because imports increased so yes, there was leakage. However, demand was strong.
An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Showing posts with label crude. Show all posts
Showing posts with label crude. Show all posts
Tuesday, October 20, 2015
Thursday, January 15, 2015
My podcast for today.
Here's my podcast for today.
I get into the SNB, Russia, crude and all the rest of a wild day.
I get into the SNB, Russia, crude and all the rest of a wild day.
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