Re: Re: gas

[Doug Henwood <dhenwood@xxxxxxxxx>]

Michael Perelman wrote:

> We have to be careful to distinguish short run from long run phenomena
> here.  Prices are not a good indication of scarcity.

No they're not, though Mark seemed to be treating them as such. The
gyrations in oil prices over the last 30 years, from $10 to $40 a
barrel, have made little economic sense - the fundamentals haven't
changed (oil is a finite resource, though opinions differ on how
finite, and if we burn too much more of it, we'll choke). Looks like
this should be a real problem for the Hayekians: what signal is there
amidst all this noise?

Doug