Oil Cross-Price Elasticity of Demand
Saturday July 5, 2008
I should alert Greg Mankiw to an article in today's National Post. From The Upside of $200 Oil:
Stepping gingerly towards the crystal ball, one could also say that there could be unforeseen benefits to the so-called era of "peak oil," especially for Canada, a stable democracy sitting on lots of energy. A commodities boom will strengthen our international stature, bolster the clout of provincial governments, reinvigorate our cities, and reward entrepreneurship. And it could make us a little skinnier, too.The article goes on to list the "benefits". From a Canadian perspective, it is hard to consider all these "benefits" without considering the impact it will have on the Canadian dollar and the Canadian economy due to Dutch Disease.
Some potential benefits:
Comments
Sell Italian bonds. Italian public debt has reached a record high at 1646,7 billion euros.It is worse than 1992 when the country went very near to declare default(insolvency)
Forget the Italian debt, worry about the U.S. debt!
Every bubble has to burst someday. When the U.S. debt bubble bursts, look out!