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What are the global implications of the latest slide in oil prices?

The latest slide in the price of crude oil is clearly unsettling the financial markets, but it should not materially affect the prospects for the global economy. Even if prices remain below $40 per barrel, this would not prevent inflation from rebounding next year. What’s more, as the latest slide mainly reflects developments on the supply side, the fall in oil prices is not a signal of weakening economic activity.

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