Energy costs Gain and pain

The doubling of the price of oil since mid-2003 does not seem to have changed the economic world. It has not obviously pushed down economic growth or corporate profits, or even pushed up inflation, in either Europe or the US. Instead, the last three years have been golden for the US economy, and no worse than bronze for Europe. But this is pain deferred, not avoided. Crude oil already accounted for 1.5% of GDP of the rich countries when it cost $30 per barrel. As a crude calculation, the move t...