A Brief Note

From the Financial Times, of all places:

Oil’s steady rise from below $15 a barrel in 1999 suggests that the world can weather price rises without significant harm to inflation or growth. A higher price makes oil exporters richer and oil importers poorer, but provided the prices of other goods adjust smoothly and workers do not demand higher wages to reflect their lower standard of living, then there should be no lasting effect on inflation.

Indeed.