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2007, No. 28
Posted 2007-12-01

Oil Shocks and Price Stability

by Yi Wen and Luke M. Shimek

While oil prices are near record highs, the U.S. economy has yet to experience a sharp rise in inflation as it did in the 1970s and early 1980s. Why the difference? The relationship between oil prices and the U.S. economy has gone through dramatic changes since the 1980s.