tag:blogger.com,1999:blog-6130060737943039418.post8017082890882849848..comments2023-04-21T14:34:29.201-07:00Comments on Economics of Growth and Development: So much news, so little time...Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6130060737943039418.post-34292588126551533422011-03-13T19:24:00.120-07:002011-03-13T19:24:00.120-07:00The recent Middle East uprisings have contributed ...The recent Middle East uprisings have contributed to 2 year high rise in oil prices, leaving consumers who are comfortable with relatively cheap/moderate energy prices feeling a little tight around the belt. As far as development goes, it seems like countries with high energy prices/ lower energy use tend to be more well-off economically (more concerned with conservation) while low-energy price, oil-producing countries have slower growth rates. Cool stat from Oxford research-an increase in energy prices by 10 percent increases the growth rate by 0.4 percentage points. Cheap energy discourages savings and the production of energy-efficient goods. It also seems that food prices and fuel are so highly subsidized in emerging markets that consumers are price insensitive. So it doesn’t even matter what fuel prices are, their consumption is probably out the roof in Arab countries. Even though it stinks for us now in the short-run, I think it will allow the US to become more innovative in the int’l market in conservation/sustainability sectors.<br /><br />Cool Economist article about inflation and issues with supply shocks-http://www.economist.com/node/18281774?Story_ID=18281774DanielleHnoreply@blogger.com