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Each week The Economist
's Editor in Chief, John Micklethwait, selects a number of articles from the latest edition of the newspaper as recommended reading. His selection is called the Editor's Highlights. You can receive this regularly by e-mail
, or view his top picks below.
March 5th - 11th 2011
Just as the world economy was recovering
THIS week we look at the 2011 oil shock and its effect on the world economy. The Middle East and North Africa produce a third of the world's oil. So far the oil price has jumped a bit, but investors seem reassured by Saudi Arabia's promise of more production. That glosses over two risks: first a serious supply disruption, or the fear of it, could send the oil price soaring. And, second, that would fuel inflation, which in turn would prompt a monetary clampdown. A lot, we argue on our cover leader
, depends on the skill of central bankers.
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