Wednesday, April 22, 2009

Natural gas update

Mark Perry notes today the big decline in natural gas prices in the past year. This chart puts the decline in a longer-term perspective than his chart. Prices have plunged, but they are still almost twice as high as they were in the 1990s. The incredible volatility of natural gas and oil prices in the past decade is truly staggering. This probably owes a lot to erratic monetary policy, which in turn has led to huge swings in the dollar's value over this same period. This is not good for producers or consumers in the long run.

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