May 21 (Bloomberg) -- Soaring oil prices may cause an energy crisis that will eventually lead to a new world financial system based on multiple currencies instead of the U.S. dollar, according to a Rice University study.
Rising inflation fed largely by oil-producing countries will force Western governments to tighten monetary policies, undermining export-driven economies in China and India, according to a study released by the Houston-based university's Institute for Public Policy. That would undercut energy demand, ending cheap credit worldwide that is fueled by so-called petrodollars and further undermining the global economy.
``We think that energy markets may play an important role in bringing about a financial crisis that may transform the global financial system,'' the study's authors wrote. The U.S. dollar's status ``would likely come to an end.''
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