Markets were rocked last week due to a dramatic drop in oil prices. This week we discuss what to make of it.
The plunge in the price of oil should act like a shot of adrenaline to the world economy. But, there will be winners and losers. Overall, the effect of cheaper oil is clearly positive. The Economist magazine provides thoughtful analysis.
Falling oil prices will encourage the Fed to keep interest rates lower for longer, because falling oil prices will reduce already-low inflation still further. Lower oil prices will reduce the headline inflation rate at a time when the Fed is trying to raise underlying inflation, according to David Wessel, writing in The Wall Street Journal.
The dark side of the oil shock. Pessimists have made a lot of noise. If pessimists have a case, it is in oil producers in the emerging world, especially Russia. But, among oil importers in the developed world, it is hard to see much of a dark side, according to Gavyn Davies of the Financial Times We hope you enjoy reading these articles along with us and that you find them informative. Please forward this to your friends and family. J. Mark Nickell & Co. Disclosure – The articles mentioned in This Week with J. Mark Nickell & Co. are for information and educational purposes only. They represent a sample of the numerous articles that the firm reads each week to stay current on financial and economic topics. The articles are linked to websites separate from the J. Mark Nickell & Co. website. The opinions expressed in these articles are the opinions of the author and not J. Mark Nickell & Co. This is not an offer to buy or sell any security. J. Mark Nickell & Co. is under no obligation to update any of the information in these articles. We cannot attest to the accuracy of the data in the articles.
