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The difference with oil inflation is that it also directly boosts revenues in oil-producing Middle Eastern countries. Consequently, they can offset core staple
by ethbr1 7mo ago
The difference with oil inflation is that it also directly boosts revenues in oil-producing Middle Eastern countries.
Consequently, they can offset core staple inflation (and usually choose to) to decrease unrest.
It's core inflation without high oil prices that torpedoes their fiscal options.
- bryanlarsen 7mo agoPerhaps it makes it less likely in the middle East, but it makes it much more likely in countries vulnerable to both oil & food price inflation. The immigration crisis caused by Arab spring toppled many governments in Europe. If a similar set of crises happened in the Americas it would make the US's illegal immigration situation much worse.
- red-iron-pine 7mo ago> The immigration crisis caused by Arab spring toppled many governments in Europe. that was entirely of their own making, though