Oil Price Fluctuation Reflects International Power Balance

ZHANG Yuyan1 ( 张宇燕) and GUAN Qingyou2 ( 管清友)
1The Institute of Asia-Pacific Studies at the Chinese Academy of Social Sciences
2The Centre for China Study at Tsinghua University

I. Statement of issue and review of literature

Every time a problem is reposed, it can be seen in a different light, therefore bringing to light a myriad of answers to the same problem. This difficulty has long plagued economists attempting to solve ongoing economic problems. Paul Krugman (2000) pessimistically stated that major problems in the economy will never be resolved but instead will slowly disappear. The world energy market and its price trends are no doubt one of the most prominent “major problems”.

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