Where Did The Recession Come From?

Oil price increases seems obvious. That plus runaway housing prices as I wrote about earlier.

And now a new research paper indicates that this great recession is the result of peak oil production.

EconoBrowser: Consequences of the Oil Shock of 2007-08

Whereas historical oil price shocks were primarily caused by physical disruptions of supply, the price run-up of 2007-08 was caused by strong demand confronting stagnating world production.