This paper critiques how oil prices affect the macro-economy and assesses quantitatively the extent to which the economies of OECD and developing nations remain susceptible to a sustained period of higher oil costs. I have chosen this matter as a result of airline trade within the financial system of any country plays essential position and every financial system within the World dependent on the Fuel largely and the rise within the gas costs impacting the selections of the international locations and this topic I suppose need to be addressed. It summarizes the findings of a quantitative train carried out by the IEA in collaboration with the OECD Economics Department and with the help of the International Monetary Fund (IMF) Research Department. That work constitutes probably the most up-to-date analysis of the impact of upper oil costs on the global economy.
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