Our Dependence On Oil Puts A Glass Ceiling On Economic Recovery, By Victoria Johnson

Our Dependence On Oil Puts A Glass Ceiling On Economic Recovery, By Victoria Johnson

In a new report out today we explore the impact of sustained high oil prices on current prospects for economic recovery. We argue that economic prosperity is predicated on the availability of cheap oil. This is not just based on simple correlations. In recent years a number of economists have begun to re-write the very foundations of macroeconomic theory, demonstrating that energy plays the most important role in economic growth. This is supported by warnings in the past year from the IEA, IMF and G7 that high oil prices have likely been constraining economic growth and economic recovery from the recession.