How did the world react to a series of energy crises from 1979 to 1981?It so happens that it is the energy crises that trigger the most powerful and concentrated transformations in almost all areas: energy, taxation, intersectoral balances, finan...
...cial instruments, foreign policy, military doctrines, etc.Modernization of the oil trading architecture. Before the crisis, the bulk of oil was traded on long-term contracts with fixed prices.The panic of 1979 shifted significant volume to the spot market, where prices skyrocketed disproportionately to the real shortage. This exposed the inefficiency of pricing and paved the way for the emergence of oil futures contracts (NYMEX WTI launched in 1983, Brent in 1988), which radically changed ...
...the architecture of the oil market.The Windfall Profits Tax (1980) was passed, a tax on the "excess profits" of oil companies, designed to redistribute rental income. The abolition of price regulation in order to eliminate gasoline shortages and incentives for investment in oil production in the United States.Massive deindustrialization in the energy-intensive industries of developed countries in the United States and the largest developed countries in #Europe and Japan, which further pred...
...etermined the concept of globalization with the transfer of industry first to Asia (primarily to #China), and then to Eastern EuropeReducing the energy intensity of the economy and a new stage of energy efficiency improvement. The transition to energy-efficient technologies in industry and transport.Large-scale switching of power plants from fuel oil to coal and gas. The share of oil in global electricity generation decreased from ~22% in 1973 to ~9% by 1985.A new stage in accelerating the...
... transition to nuclear power together with an increase in the specific consumption of gas in the structure of electricity generation.A paradigm shift in the automotive industry – from large and voracious American cars of the 60-70s to compact and economical cars (Japan set the fashion in the industry in those years, the momentum shifted to Europe and later to the United States).Monetary transformation. A complete departure from the concept of low or negative real rates to stimulate product...
...ion. The "Volcker Revolution" led to a fierce rise in real rates and "shock therapy" within the framework of the concept of "defeating inflation at any cost, even with the risks of an economic crisis."Volcker's experience has become canonical for central banks: a resource-based inflationary shock must be stopped by tight monetary policy, even at the cost of a recession. Keynesian orthodoxy, which did not explain stagflation, gave way to monetarism and the theory of rational expectations.Th...