The first deputy managing director of the International Monetary Fund (IMF), John Lipsky, said today that prices of food and fuel have shown significant progress so that would threaten global growth.
The agency’s economist, said during his speech at an energy forum in Rome that “the prices of raw materials in general, especially food and energy, have now reached levels where it runs the risk of becoming a destabilizing force for the global economy. ”
“This is a global problem that requires a coherent global response,” he said.
Meanwhile, Lipsky pointed out that despite the fact that advanced economies like the United States has slowed demand for oil has not declined in emerging markets such as China, India and the Middle East, representing two thirds of the increase in energy use in the last decade.
Situation which is not seen on the horizon near a drop in fuel prices.
“Fundamentally, oil prices are likely to remain at high levels because market conditions may remain tight,” he said, adding that the idle capacity among OPEC producers was less than half their 1996 levels 2007.
It may be recalled that on Monday the price of oil exceeded U.S. $ 117 a barrel on the London market.
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22Apr
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19Apr
The first deputy managing director of the International Monetary Fund (IMF), John Lipsky, said today that prices of food and fuel have shown significant progress so that would threaten global growth.
The agency’s economist, said during his speech at an energy forum in Rome that “the prices of raw materials in general, especially food and energy, have now reached levels where it runs the risk of becoming a destabilizing force for the global economy. ”
“This is a global problem that requires a coherent global response,” he said.
Meanwhile, Lipsky pointed out that despite the fact that advanced economies like the United States has slowed demand for oil has not declined in emerging markets such as China, India and the Middle East, representing two thirds of the increase in energy use in the last decade.
Situation which is not seen on the horizon near a drop in fuel prices.
“Fundamentally, oil prices are likely to remain at high levels because market conditions may remain tight,” he said, adding that the idle capacity among OPEC producers was less than half their 1996 levels 2007.
It may be recalled that on Monday the price of oil exceeded U.S. $ 117 a barrel on the London market. -
14AprIn the 90’s Japan went through a horrific deflationary episode that kept the country with very low growth for almost a decade. Today the United States seem to experience something similar and the terms of deflation and liquidity trap of jumping back into the public. And in other posts I wrote about deflation and now I want to dedicate a few words to the concept of liquidity trap. It is available in English Wikipedia, the liquidity trap occurs when the nominal interest rate is close or equal to zero and the monetary authority is unable to stimulate the economy with the traditional tools of monetary policy. In this kind of environment people do not expect high returns in any kind of investment, so try to take your cash and avoid any investment in the medium or long term. This aversion to investment causes recessions are more severe.
This whole concept seems so extraordinary reality of the U.S. economy. Another point that is discussed through the understandings concerning the number of tools that are on the Federal Reserve to fight the ills of the economy. Greg Mankiw for the EDF still has some, but the reality is that you are much, much less tools to do a few months ago. In fact, with rates practically to zero you just need to activate the helicopter and throwing money so inorganic money to people. Obama has already shown its willingness to follow the Keynesian prescription for stimulating the economy via government spending, mainly in infrastructure and this is appropriate but the mystery will take time to lift the downcast economy estadonunidense.
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