Higher oil prices and the world economy: the adjustment problem
Nine international economists examined the unprecedented transfer of income resulting from the 1973-1974 oil embargo, and concluded that: (1) the economic recession was due to quadrupled oil prices and is still constraining the developing non-oil-producing countries; (2) fears that the economies and living standards of industrial countries cannot handle higher prices are exaggerated; and (3) the industrial nations should manage their demand and offer financial assistance to developing nations. With proper management, internal policies can maintain employment and output in the face of sudden and large oil price increases, thus warding off inflation and lessening the effect of the policies of the oil exporting nations. Policy changes that encourage importing nations to reduce their demand would lessen their dependence and OPEC's power, but would require basic social changes to modify and share income loss. Individual chapters are devoted to: The United States; Western Europe; Japan; The Developing Countries; The International Financial System; and Trends in the International Oil Market. (DCK)
- Research Organization:
- Brookings Institution, 1775 Massachusetts Ave. NW, Washington, DC 20036
- OSTI ID:
- 7365582
- Country of Publication:
- United States
- Language:
- English
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ASIA
CHARGES
CONTROL
DEVELOPING COUNTRIES
ECONOMICS
ECONOMY
ENERGY POLICY
ENERGY SHORTAGES
ENERGY SOURCES
EUROPE
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
JAPAN
MARKET
NORTH AMERICA
OPEC
PETROLEUM
SOCIO-ECONOMIC FACTORS
TRADE
USA