The Dollar Crisis, Oil Prices, and Foreign Exchange Risks: The Case for a Basket of Currencies as Numeraire
1980 ◽
Vol 11
(3)
◽
pp. 305-311
Keyword(s):
Since the quadrupling of oil prices in 1973–74, OPEC and oil prices have made front-page news and captured the public imagination. It is no secret that oil prices are administered prices, where an economic agent is a price maker; other participants in the market have to adjust their behavior to this price. It is not a new phenomenon. From its early history, the oil industry in the United States — by far the world's first oil province — was dominated by the Standard Oil Trust. On the international scene, the role of the Seven Sisters hardly needs mention. They continued to control oil export prices until the 1960s.