Saturday, January 15, 2011

It is Transportation Shocks

If we look back in time to 1820, we always see transportation congestion caused by information shocks as a cause of depressions.  Hamilton covers the oil shocks in the post war period.

I think information shocks once again drove up oil prices by creating new modes of delivery.  We end up an old transportation technology trying to  move goods around in response to new information technology.

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