The Lessons of the First Oil Shock From Paul McCracken OECD’s Report Should Inspire Current Leaders.

“History never repeats itself, but it does often rhyme.”

Does the surge in commodity prices, particularly oil, herald a return of the stagflation that marked the 1970s? Let's take France as an example. Between 1970 and 1980, average annual growth, which had been 6% during the 1960-1970 decade, had fallen to 3.8%. At the same time, average annual inflation rose from 4.2% to almost 10%. This break led to a thor…