tag:blogger.com,1999:blog-4159906646513306121.post6561928222231920424..comments2023-11-19T20:38:50.237-08:00Comments on Economic Logic: The oil price problem is a dollar problemEconomic Logicianhttp://www.blogger.com/profile/10171296292101248614noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4159906646513306121.post-14084217672627371982008-05-24T08:11:00.000-07:002008-05-24T08:11:00.000-07:00Aflakete, your point is well taken. But the price ...Aflakete, your point is well taken. But the price of crude is not what matters for businesses and individuals. This is why I provide the second table, where the increase in German gas prices is only 46% over 8 years. Factor in about 16% overall inflation, the remaining 30% over 8 years, or 3.3% a year, is not dramatic.Economic Logicianhttps://www.blogger.com/profile/10171296292101248614noreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-90886746249452344852008-05-22T12:17:00.000-07:002008-05-22T12:17:00.000-07:002 things:A 176% increase of crude oil prices is a ...2 things:<BR/><BR/>A 176% increase of crude oil prices is a lot less than 376% but not small either. There is an oil price problem even without the dollar depreciation.<BR/><BR/>As far as the price of a gallong of gas, Germany may have a higher demand elasticity (through public transport infrastructure and stuff) and may be a higher supply elasticity which could have reduced the price hike.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-63749879962575428112008-05-22T08:06:00.000-07:002008-05-22T08:06:00.000-07:00I find it interesting that taxes do not seem to ha...I find it interesting that taxes do not seem to have an impact on the % change. Indeed, gas tax is significantly higher in Germany, and as it is a lump sum tax, if the price before tax increases in the same proportion in dollars in both countries, then the after tax increase should proportionally higher in the US than Germany. But no.<BR/><BR/>I had heard the argument before that this was one reason that Europe was feeling less the price increases.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-24617261901138801222008-05-22T06:59:00.000-07:002008-05-22T06:59:00.000-07:00We agree. I've been saying this for years.We agree. I've been saying this for years.Independent Accountanthttps://www.blogger.com/profile/07800220849565219709noreply@blogger.com