Paul Krugman - Latest News and Information
The blog argues that cutting oil use hinges on time horizon: short‑run reductions require steep price hikes or drastic behavior shifts, while the long‑run offers ample room for vehicle replacement with fuel‑efficient or electric models. Recent geopolitical tension, exemplified by the Strait of Hormuz disruption, underscores the strategic vulnerability of oil dependence. Even at $100‑$150 per barrel, demand elasticity remains limited, suggesting recession‑level price spikes would be needed for immediate cuts. Over decades, however, technology and lifestyle changes can slash oil consumption with little economic pain.
The episode examines whether reinstating a 55 mph speed limit could help curb soaring oil prices amid the ongoing Strait of Hormuz crisis. Host Paul Krugman outlines the current supply shock—about a 10% cut in global oil flow—and argues that short‑term...
