Oil prices and presidential prospects

March 14, 2011

in Economics, Politics

Over on FiveThirtyEight, Nate Silver is arguing that there is little evidence that high oil prices reduce the chance of re-election for an American president, except indirectly as they affect GDP, inflation and unemployment.

Silver does highlight that a return to recession can be expected to significantly diminish President Obama’s re-election prospects. That’s the sort of political incentive that can favour urgent activity to encourage economic growth and reduce unemployment, potentially at the expense of the long-term stability of the economic system.

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. April 15, 2012 at 10:31 am

“There is no rational reason for high oil prices,” writes Ali Naimi, Saudi Arabian Minister of Petroleum and Mineral Resources, in today’s Financial Times. Well, I can think of one– if oil prices were lower, the world would want to consume more than is currently being produced.

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