There has been a significant shift to green energy but the fear of oil shocks – given birth two generations ago – is now back in vogue. Paul Donovan, chief economist at UBS, notes that the 1973 oil shock was such a big event it has led to “biased” thinking about oil ever since even though “oil matters less than it did 45 years ago or even 10 years ago”.
SINGAPORE (Jan 23): Technological disruption used to be feared but in today’s context, unpredictable politics is more worrisome. Already, world geopolitics, in the two decades after Sept 11, 2001, has faced plenty of uncertainty. But with US president Donald Trump’s blatant disregard for norms of behaviour, the level of volatility has only gotten worse.
The US Federal Reserve, for decades, has held its head high as an independent institution whose unwavering focus was the economy. As recent decisions have shown, the US Fed is susceptible to pressures from the stock markets as well. The knock-on impact will be far and wide.
