The high price of oil

Do Low Interest Rates Ensure High Asset Prices?

A Good Rate Hike for Europe

History shows that rising inflation is eventually followed by higher nominal interest rates.

First, it has contributed to rising oil prices.

Consequently, oil prices increase.

The Silver Lining in High Commodity Prices

An expectation that interest rates will be high sometime in the next decade should mean high interest rates on long term bonds today.

The higher prices of food and energy depress real incomes further.

Can High Oil Prices Be Good?

No quick fix exists for oil prices.

The variance is due mainly to an increase in fuel prices.

As oil prices go up, energy patents go up.

In the recent past, the prices of these products have increased faster than steel prices.

Many worried that it would a rise in the price of train tickets.

In this case, the price of loanable funds is the real interest rate. An expectation that interest rates will be high sometime in the next decade should mean high interest rates on long term bonds today.

With higher interest rates depressing housing prices, the game is over.

But higher energy prices, by themselves, will not cause the ECB to pull the interest rate trigger.

The rise in house prices has begun to stabilize, and the impact of the rise in commodity prices is tapering off.

The struggle to meet rising food and energy prices is hard enough.

From the weather, we move to a crazy price hike in cinema tickets.

Jordanian Moey complains about the increase in alcohol prices in his country.

Additional requirements were the result of high prices for goods and services in Liberia.

Ordinarily, a sharp rise in oil prices quickly translates into higher inflation expectations, followed by rising interest rates at all maturities.

Central banks respond to lowered demand by reducing interest rates and to higher expected inflation by raising interest rates.

As food prices rise, so is hunger and poverty.

But this economic logic does not apply in the case of increases in oil prices.

Shortages of construction materials do not seem to be a reason to expect high home prices, either.

On his last article about rising food prices he gets more in depth and says

In the spring of 2008, Haitians demonstrated against rising food prices.

The rise in raw material prices was exacerbated by increased transport costs.

An increase in soya flour prices in the markets of Europe and Central America in comparison with the Argentine market

Such circumstances include, first, a high debt GDP ratio, with rising interest rates impeding growth.

Rising house prices gave people the illusion that increasing wealth backed their borrowing.

With higher energy prices, many Russian officials are enjoying their renewed power.

But interest rates have been increasing around the world since 2003.

A healthy supply of alternative energy sources will help to combat gasoline price spikes.

After all, these events don t really explain why prices of other commodities often followed that of oil.

Currently, the Maghreb countries suffer from soaring unemployment, poverty, and high prices for basic commodities.

Before the real estate boom of the late 1970 s, hardly anyone was worried about rising home prices.

A hike, in other words, would indicate that good things are happening.

Around the world, there is anguished hand wringing about the high price of oil.

Shortages of natural gas increased fertilizer prices, pushing up food prices.

The second threat to economic recovery is high oil prices.

Sky high oil and food prices added to the pain, and thus to the downturn.