September 22, 2004

ANCHORS AWEIGH:

OECD Says Oil Prices and Inflation Not Hurting Industrial Economies (Douglas Bakshian, 21 Sep 2004, VOA News)

A leading economic think-tank sees a strong recovery in the second half of the year for major industrial economies, in spite of high oil prices, and says inflation is not yet a concern.

The Organization for Economic Cooperation and Development, in an interim report, says oil prices have so far had only a limited impact on core inflation and wages in the world's major economies.

Oil has recently traded around $46 a barrel - much higher than normal. However, Jean-Philipe Cotis, the chief economist for the OECD, told VOA that the impact of an oil price hike is a lot smaller today than it was 30 years ago during the first oil shock. [...]

"Inflation expectations have not moved a lot despite the small oil price shock we had," he said. "It means that price stability is well anchored in our economy and monetary policy will not have to tighten prematurely."


Somebody wake the Maestro.

Posted by Orrin Judd at September 22, 2004 12:54 PM
Comments

Has OECD ever been right about anything that mattered?

Posted by: David Cohen at September 22, 2004 1:19 PM
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