"The effect of the current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," he said.
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FRS Chairman: Oil Prices Dampen Economic Growth
US Federal Reserve chairman Alan Greenspan has warned that surging energy prices will dampen global economic growth
US Federal Reserve chairman Alan Greenspan has warned that surging energy prices will dampen global economic growth but should have a much smaller negative impact than the oil shocks of the 1970s.
"Although the global economic expansion appears to have been on a reasonably firm path through the summer months, the recent surge in energy prices will undoubtedly be a drag from now on," Greenspan told a business audience in Tokyo during a rare visit to Asia on Tuesday.
"The effect of the current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," he said.
Greenspan noted that oil prices remained below their inflation-adjusted peak of 1981 and said the world's economy had grown more energy-efficient in recent decades.
"The effect of the current surge in oil prices, though noticeable, is likely to prove significantly less consequential to economic growth and inflation than the surge in the 1970s," he said.
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