What Will Lift World Economy? Goldman Says Higher Oil Prices
- Oil incomes create ‘global liquidity’ that boosts asset values
- Changes in financial markets during 2000s transformed savings
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Forget the stagflation of the 1970s. Higher oil prices would be a boon for the global economy, according to Goldman Sachs Group Inc.
Pricey crude means economies such as Saudi Arabia take in more money than they can spend, which financial markets help distribute through the rest of the world, boosting asset values and consumer confidence, the bank’s analysts Jeff Currie and Mikhail Sprogis wrote in a Nov. 22 research note.