Furthermore, oilproducing countries, which had been in excess of funds, are now in shortage of funds, and this has caused a reversal in the flow of funds, creating considerable stress not only on the economic activity of these countries but also on global stock markets and foreign exchange markets.
As I have described, the substantial decline in crude oil prices has had large negative impacts; however, when viewed in the somewhat longer term, these will be net positive effects on the global economy, because income will be transferred from economies with a low propensity to consume to those with a high propensity to consume, and from capital-intensive industries to more labor-intensive industries.