The Biggest Surprise of 2005

Brad Setser has a good post today. He calls the U.S. economy’s resiliency to higher oil prices, “the biggest surprise of 2005.”

I suspect it also has to do with the fact that the US economy has become very credit-intensive and, at least for now, it seems that most of the petrostates’ oil windfall is being recycled (one way or another) back into the US credit markets.

I think he’s right. We’re not in the 1970s anymore. OPEC is much less powerful than it once was.

Posted by on August 10th, 2005 at 4:48 pm


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