Policy reactions to the recent financial crisis were shaped by perceptions – and often misperceptions – of the past, particularly the inter-war years. In this context, I am also pleased to welcome several of my esteemed colleagues from other European central banks, who are joining us for this conference.
Comparison of current and previous oil price shocks Taking the developments since mid-2003 as a single energy price shock, the current oil price hike is roughly comparable to its predecessors in the 1970s and 1980s. From December 1973 to January 1974, the dollar price of oil increased by over 250%.