Journal article
Primer on the United States Economy in the Shade of Energy Sector
This research found that the energy basis transition significantly affects sectors which account for almost 31% of the U.S. gross domestic product (GDP) and 18% of employment. Because this portrays a substantial contribution of share as of economic activity, the central bank requires a thoughtful understanding of the amplifications of this structural alteration as part of the monetary policy debate. The West Texas Intermediate (WTI) benchmark demonstrates the price of oil significantly dropped by additional terms than half from January 21 to April 3 in FY2021. There is a long belief in regard of economists arguing that lesser oil prices, all else being equal, are better for the United States financial economy. Thus, one may have the expectation of this dramatic price slash to have been substantial much needed fragment regarded as the welcome report. Instead, this research found that in regard of sense of balance, this oil price decrease has pretty much weakened than strengthening the U.S. economy, making this consequence of event much remarkable comparing to the past episodes in regard of falling the oil prices.
