Certain situations in life are governed by what I call ‘ the playbook.’ In economics, the playbook says that falling interest rates will always stimulate growth and inflation, which are necessary for countries to grow GDP and spending. It also says that falling oil prices are generally a great boost to the global economy. Experience, however, tells us the playbook isn’t always right. Falling oil prices aren’t shaping up as the cure we would normally expect in a weak global economy.
The article below addresses risks and opportunities and offers a quick brief on what lower oil prices mean to investors, producers and consumers around the globe.