Energy and stabilization

This is oil, CPI and real growth, percent change annually.  It is volatility, perhaps.  Oil changes are divided by ten to scale, so oil volatility is extremely higher than shown.

But the important point, when we have stable growth, say from 2010 to 2015. During stable periods inflation and rel growth track.  This is a queueing effect, queue variance and mean tend to equalize when queues are stable.

The point about poil is that stabilizing queues is energy intensive.  When currency fluctuations effect oil prices we get disequilibrium, sometimes good (real growth greater than inflation) and sometimes bad.  We are very dependent on imported oil and most of the recessions are accompanied by oil price shocks.