Nobel Laureate Spence Says Oil Shock Still Possible, Merkel Missed Opportunity to Help EU

The video discusses the potential impact of elevated oil prices on the global economy, comparing it to the oil shocks of the 1970s. It then shifts focus to Germany's recent environmental package announced by Angela Merkel, which disappointed markets due to its lack of fiscal impact. The discussion concludes with an analysis of Europe's need for a coordinated fiscal policy to address diminishing growth prospects, highlighting Germany's role in this economic strategy.

What are the potential consequences of elevated oil prices on the global economy?

How does the current economic environment compare to the 1970s regarding oil shocks?

What was Angela Merkel's stance on the environmental package and its fiscal impact?

What are the challenges Europe faces in transitioning from monetary policy to fiscal policy?

Why might the markets be disappointed with Germany's recent policy decisions?