One week after IMF economist Michael Kumhof attracted attention with his remarkable ideas on debt redemption and money creation in the working paper "The Chicago Plan Revisited", here he is again with another remarkable study, on peak oil this time. One scenario in his modelling predicts an 800 percent increase in oil prices in two decades. Anyone for more doom-and-gloom?
Is the IMF becoming revolutionary? And will the media and policymakers read and understand the implications of these excellent papers? I guess at least the Queen will not have to ask questions why nobody warned of this clear and present danger.
Read The Washington Post’s “IMF study: Peak oil could do serious damage to the global economy” and the full working paper “Oil and the World Economy: some possible futures”.