Abstract
For many years there has existed a debate among economists as to whether the problems of unemployment, inflation, and international economic adjustment are largely financial in nature or whether they are ''real''; i.e., arising from dislocations in commodity and labor markets. The correct position is that they are a bit of both. This is the viewpoint that provides the background for this paper, which examines the consequences of the recent petroleum price increases imposed by the major oil-exporting countries. On the one hand, the ''real'' implications are fairly obvious. First, petroleum products are used either directly or as fuels in virtually every commodity-production process. Higher input costs are therefore bound to lead to increased prices for most other commodities. Second, higher petroleum prices will lead (and are leading) to the use and/or search for viable substitutes. However, there have been several important financial implications as well. First, there has been a dramatic change in the pattern of domestic and international financial flows resulting from the rapid accumulation of new wealth by the oil-exporting countries. Second, there has been an important change in the nature of these flows with significant implications for the stability of domestic commodity and foreign exchange markets.
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Citation Formats
McKenzie, G.
Oil cartel and international financial stability.
United Kingdom: N. p.,
1976.
Web.
doi:10.1016/0301-4207(76)90005-2.
McKenzie, G.
Oil cartel and international financial stability.
United Kingdom.
https://doi.org/10.1016/0301-4207(76)90005-2
McKenzie, G.
1976.
"Oil cartel and international financial stability."
United Kingdom.
https://doi.org/10.1016/0301-4207(76)90005-2.
@misc{etde_7359378,
title = {Oil cartel and international financial stability}
author = {McKenzie, G}
abstractNote = {For many years there has existed a debate among economists as to whether the problems of unemployment, inflation, and international economic adjustment are largely financial in nature or whether they are ''real''; i.e., arising from dislocations in commodity and labor markets. The correct position is that they are a bit of both. This is the viewpoint that provides the background for this paper, which examines the consequences of the recent petroleum price increases imposed by the major oil-exporting countries. On the one hand, the ''real'' implications are fairly obvious. First, petroleum products are used either directly or as fuels in virtually every commodity-production process. Higher input costs are therefore bound to lead to increased prices for most other commodities. Second, higher petroleum prices will lead (and are leading) to the use and/or search for viable substitutes. However, there have been several important financial implications as well. First, there has been a dramatic change in the pattern of domestic and international financial flows resulting from the rapid accumulation of new wealth by the oil-exporting countries. Second, there has been an important change in the nature of these flows with significant implications for the stability of domestic commodity and foreign exchange markets. This paper emphasizes the interaction of ''real'' and financial variables that has taken place as a result of the actions of the oil exporters.}
doi = {10.1016/0301-4207(76)90005-2}
journal = []
volume = {2:2}
journal type = {AC}
place = {United Kingdom}
year = {1976}
month = {Jun}
}
title = {Oil cartel and international financial stability}
author = {McKenzie, G}
abstractNote = {For many years there has existed a debate among economists as to whether the problems of unemployment, inflation, and international economic adjustment are largely financial in nature or whether they are ''real''; i.e., arising from dislocations in commodity and labor markets. The correct position is that they are a bit of both. This is the viewpoint that provides the background for this paper, which examines the consequences of the recent petroleum price increases imposed by the major oil-exporting countries. On the one hand, the ''real'' implications are fairly obvious. First, petroleum products are used either directly or as fuels in virtually every commodity-production process. Higher input costs are therefore bound to lead to increased prices for most other commodities. Second, higher petroleum prices will lead (and are leading) to the use and/or search for viable substitutes. However, there have been several important financial implications as well. First, there has been a dramatic change in the pattern of domestic and international financial flows resulting from the rapid accumulation of new wealth by the oil-exporting countries. Second, there has been an important change in the nature of these flows with significant implications for the stability of domestic commodity and foreign exchange markets. This paper emphasizes the interaction of ''real'' and financial variables that has taken place as a result of the actions of the oil exporters.}
doi = {10.1016/0301-4207(76)90005-2}
journal = []
volume = {2:2}
journal type = {AC}
place = {United Kingdom}
year = {1976}
month = {Jun}
}