Oil prices and the global economy: it’s complicated

Oil prices have been persistently low for well over a year and a half now, but as the April 2016 World Economic Outlook will document, the widely anticipated “shot in the arm” for the global economy has yet to materialize. Maurice Obstfeld, Gian Maria Milesi-Ferretti, and Rabah Arezki argue in an IMF paper that, paradoxically, global benefits from low prices will likely appear only after prices have recovered somewhat, and advanced economies have made more progress surmounting the current low interest rate environment. Read Here

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