Quote Originally Posted by c1ue View Post
Really?

So you're saying that "real" GDP is decreasing in proportion to the price of oil increasing?

Because we both know that isn't true.


Energy and Money

Part I: Too Little Oil or Too Much Money?
Part II: We Can't Repeal the Laws of Thermodynamics


Weekly Commentary: May 4, 2006

Energy and Money Part I: Too Little Oil or Too Much Money?

Inflation is not only determined by the supply of goods available relative to the supply of money to buy them, but also the demand for the currency in which goods are priced relative to the supply of that currency. It can be hard to tell which factor is primarily driving prices.