Winners and losers
America and its friends benefit from falling oil prices; its most strident critics don’t
IN EARLY October the IMF looked at what might happen to the world economy if conflict in Iraq caused an oil-price shock. Fighters from Islamic State (IS) were pushing into the country’s north and the fund worried about a sharp price rise, of 20% in a year. Global GDP would fall by 0.5-1.5%, it concluded. Equity prices in rich countries would decline by 3-7%, and inflation would be at least half a point higher.
This article appeared in the International section of the print edition under the headline “Winners and losers”
International
October 25th 2014
From the October 25th 2014 edition
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