Brad always summarizes and quotes the master debaters. Can we change aggregate behavior by manipulating currency with central bank maneuvers?
Befoere I give you my opinion, let me get more explicit about what caused the crash. Somewhere in the Persian gulf, in July 2008, there was ten tankers more waiting in line than any decent human could accept. Some group of oil buyers said screw this, regime change in il consumption.
Today we have a shortage of shale drillers, a shortage of support workers for shale mining in the USA. Today we need a pipeline to ship oil to out Texas refineries, for transhipment of refined fue to Latin America and farther.
Banking had little to do with it, the global oil sipping structure had a lot to do with it. Oil shipping can have high transaction costs when it is slightly scrambled. Its a clock, and China n India nudged in line, and the system has changed dramatically to fit them in.
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