Sunday, December 07, 2008

What Took 6 Yrs. in 1980s Took Only 6 Mos. in '08

To put the recent fall in gas prices in perspective: It took more than six years for real gas prices to fall from about $3.50 per gallon in the early 1980s to $1.72 in early 1986, and it took only about six months for real gas prices to fall from about $4 in June 2008 to $1.72 in December 2008.

4 Comments:

At 12/07/2008 8:50 PM, Anonymous Anonymous said...

Why?

 
At 12/08/2008 12:14 AM, Anonymous Anonymous said...

Obviously, it was a conspiracy of market-manipulating speculators! Possibly in Zurich. It's time for some good old fashioned government regulation to stop this outrage!

 
At 12/08/2008 2:38 PM, Anonymous me said...

Ha!! Waste time explaining something and risk losing status as a top 10 economics blog!!??

 
At 12/08/2008 5:31 PM, Anonymous Anonymous said...

easy to explain....in the 80's there was a residual inflationary environment. most recently, most of the run up in the price reflected a weak dollar, which as the financial crisis unfolded and the dollar rose, was instantly corrected.

 

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