From a very naive economist: Is the spike in oil prices is (almost) largely due to (global) inflation stoked by American dollar printing? Limited role of uncertainty and the need for side arrangements (transaction costs) of the sort that countries got into with Iran?
Both the Naïve Economist and myself puzzle over the relationship--to the extent there is a relationship--of monetary phenomena like "printing dollars" to "asset bubbles". It's something we have to think about more. The Naïve Economist was motivated, however, to compose a short essay about a simpler phenomenon ... or, rather, about a myth about globalized markets for homogeneous products. That myth involved the way mature markets for products that are physically homogeneous (or nearly so) might nonetheless exhibit a certain important kind of differentiation: differentiation in space. Geography.
The antitrust enterprise takes a lot of care to distinguish regional markets from global markets. Markets for oil and wheat are globalized. They have not always been that way, and they are only that way, because a lot of parties, most of them private, some of them public, have invested enormous resources in making them globalized.
The "global" in "global markets" renders notions like "energy independence" as what they are: mostly myths. The same goes for the idea that not buying Russian oil will translate directly in to diminished oil revenues for the Russians.
Quite interesting essay. We see the Russian economy currently in a bit of trouble after selling discounted oil to the Chinese and maybe India. Their production also seems to be slowing so perhaps there are maintenance issues with their oilfield equipment caused by sanctions and skill losses. OTOH, the Arctic fields will require some new technology that requires some real skills to develop.
I do hope to see an article related to the dollar-oil (energy) relationship. Does seem national power and influence relates to energy capability along with the intellectual property to exploit it.
From a very naive economist: Is the spike in oil prices is (almost) largely due to (global) inflation stoked by American dollar printing? Limited role of uncertainty and the need for side arrangements (transaction costs) of the sort that countries got into with Iran?
Greetings, V --
Good hearing from you.
Both the Naïve Economist and myself puzzle over the relationship--to the extent there is a relationship--of monetary phenomena like "printing dollars" to "asset bubbles". It's something we have to think about more. The Naïve Economist was motivated, however, to compose a short essay about a simpler phenomenon ... or, rather, about a myth about globalized markets for homogeneous products. That myth involved the way mature markets for products that are physically homogeneous (or nearly so) might nonetheless exhibit a certain important kind of differentiation: differentiation in space. Geography.
The antitrust enterprise takes a lot of care to distinguish regional markets from global markets. Markets for oil and wheat are globalized. They have not always been that way, and they are only that way, because a lot of parties, most of them private, some of them public, have invested enormous resources in making them globalized.
The "global" in "global markets" renders notions like "energy independence" as what they are: mostly myths. The same goes for the idea that not buying Russian oil will translate directly in to diminished oil revenues for the Russians.
Quite interesting essay. We see the Russian economy currently in a bit of trouble after selling discounted oil to the Chinese and maybe India. Their production also seems to be slowing so perhaps there are maintenance issues with their oilfield equipment caused by sanctions and skill losses. OTOH, the Arctic fields will require some new technology that requires some real skills to develop.
I do hope to see an article related to the dollar-oil (energy) relationship. Does seem national power and influence relates to energy capability along with the intellectual property to exploit it.
I've been puzzling about it myself ... the dollar-oil business. I don't have anything clever to suggest (yet) ...
BTW, this article in not in your archives. Matter?