FYI: As expected, falling crude oil prices lead to falling gasoline prices and lower inflation.
Since mid-June, the spot price of the U.S. benchmark for crude oil, West Texas Intermediate (WTI), has fallen from a bit less than $108 per barrel to a bit less than $50 per barrel—a decline of more than 50 percent. Much of the economic research on the effects of crude oil prices on the macroeconomy has focused on the effects of oil prices: Sharp increases generally have a negative effect. In fact, oil price increases have preceded 10 of the past 11 U.S. recessions. 1
But do falling oil prices, overall, have positive effects on the macroeconomy?
Regards,
Ted
http://www.ritholtz.com/blog/2015/02/are-oil-price-declines-good-for-the-economy/print/
