AS, quoting that rag, The Economist:
Adjusted for inflation, the $100 barrel would not exceed the record set in 1980.
Oh, I feel sooo good about that:
Not only could the world withstand higher prices, some argue that further increases would be beneficial. ... Large and sudden increases are the ones that tend to create recessions.
humm... No and no.
In the U.S., the current figure is about 6.5%. Use that as your elasticity of demand and do the math for a xx% increase in cost (say 35-60%).
Developed countries use half as much oil per real dollar of GDP as in the mid-1970s
