Has oil lost the capacity to shock?


  • David Walton

    1. Oxford University
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      David Walton was a visiting Professor at Oxford University's Department of Economics, but sadly died after a short illness on 21 June 2006.


Abstract. Recent high oil prices have neither triggered a recession nor caused inflation. This is in contrast to the ‘stagflation’ of the 1970s. The dissimilarity can be explained by increased labour market flexibility, central bank independence and the role of monetary policy.