> If OPEC decided to stop producing oil altogether you bet there would be “inflation” caused by oil prices but that doesn’t mean the FED should be goaded into m

> If OPEC decided to stop producing oil altogether you bet there would be “inflation” caused by oil prices but that doesn’t mean the FED should be goaded into making changes to policy. Why should not? Inflation is just change of price level. Price level is just ratio of circulating money to real production. If OPEC decided to stop producing oil, that would create massive negative shock to real production, so FED should restrict circulating money to maintain that ratio.