Energy prices peaked in 1985 and dropped about 50 per cent afterwards because of the loss of power of the OPEC cartel. We assume in our first simulation that OPEC was able to maintain the oil price level at 1985 values for five more years. As a consequence all other energy sources would adjust to a generally higher energy price level. This OPEC tax scenario would lead to an increase in the general price level of about 5 per cent accompanied by a slight decline of GDP and a loss of about 6,000 jobs in five years.
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