Comment: Rebutting McKillop's 'counterintuitive notion': Higher oil prices do suppress economic growth

06/14/2004
In a recent article in Oil & Gas Journal, author Andrew McKillop claims that higher oil prices are beneficial to the world economy.1 He labels his views as being counterintuitive. We argue here that this view is just plain wrong.The standard view, which emphasizes that oil price shocks are bad news for nonoil exporters, is clearly the opposite of McKillop's view that higher oil prices benefit the world economy.Our view is much closer to the standard view—which is briefly set out in this article—than McKillop's. The reasons follow here:Point of view wrongMcKillop makes a number of assertions and observations that are repeated below. There are a number of other, extraneo...
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