MPW Economics Discussion Board

Economics news post for AS and A2 students at MPW Cambridge - please add brief comments to stories you find interesting or relevant. You can: speculate on future trends; link in with other topics or units; interpret/analyse; evaluate (magnitude of change/short term/long term...); offer a personal evaluation (normative statements) but please offer evidence or an explanation. You can also evaluate other students' comments but please be professional in your response.

Monday, 5 January 2009

Low price of oil will fuel UK economy

5 comments:

Anonymous said...: In my opinion, I do not agree the low price of the fuel will accelerate the economy in the long term, for short term it is true, but in the long term, since the price of oil will back to normal again(very soon),at least not as low as we are experiencing.; 6 January 2009 at 20:07
econinfohunter said...: yes, there is a question whether oil will stay below $50 - it may not and may surge. As long as it is low, it acts like a tax cut and has a stimulus effect. It may not have a strong long term effect and there is a lot of uncertainty as to where the equilibrium price for oil actually is - nobody actually knows.; 6 January 2009 at 23:17
Anonymous said...: Fluctuating price of oil is not a good indicator for an economy as it provides wrong incentives and information in the market.; 7 January 2009 at 21:35
Anonymous said...: anonymous is me alex above; 7 January 2009 at 21:36
Kamit Chingis said...: Also low prices on oil will make investments into developing into oil fields lower so in future price for oil might be even higher than this summer.; 8 January 2009 at 12:16

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