[Peakoil] How High Oil Prices Lead to Recession

[Jenny Goldie]

How High Oil Prices Lead to Recession
Our Finite World
Posted on January 24, 2013 by Gail Tverberg 


There is ample evidence that spikes in oil prices leads to recession, at least in the US, which is an oil-importing nation. James Hamilton has shown that 10 out of the last 11 US recessions were associated with oil price spikes. How does this happen? An analogy can perhaps help explain the situation. This analogy also sheds light on a number of related economic mysteries:...

http://ourfiniteworld.com/2013/01/24/how-high-oil-prices-lead-to-recession/