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Unlike the 1970s, the world is now able to withstand the oil price shock

Is it the 1970s all over again? In the past few days we have heard that refrain more and more often, including the version from the housebuilders that for them this is worse than the 1970s.

Most people who are making these remarks were not in jobs or buying houses in the 1970s, so they don't remember what it was like to try and cope with the inflation and the strikes that characterised that period.

Still, the surge in the oil price has brought it in real terms higher than its level of the late 1970s, and though the world economy has become more energy-efficient since then, the proportion of world GDP accounted for by oil is as high as it was then.

What has not happened has been the ...

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