A Gas Price That Might Matter

Is it $4.11? Although gasoline prices are rising, consumers have not altered their driving habits. Economist James Hamilton suggests that the tipping point tends to be when prices exceed the highest point during the past 3 years. That number is…

Higher Gas Prices

How have we responded to higher gas prices? According to a recent study, our first response is to buy a lower grade of gasoline. Drivers, used to premium, opted for regular gasoline instead. However, because we have different “budget baskets,”…

Putin’s Economics

Our story begins during February when Russian Prime Minister Putin decided to freeze gasoline prices. Oil companies had a predictable response. They left. Following the money, they redirected their supply to higher prices elsewhere. The result? Russian gasoline exports were…

Indian Protests Fueled By Gas Price Hike

A government decision to stop subsidizing gasoline prices in India fueled protests last week. The subsidy cost the indian government 2.5% of its budget ($5.5 billion). Now, with prices responding to the market, the record high deficit can drop. However, a…