UBS On-Air: Paul Donovan Daily Audio 'Economic impacts'

Events in the Gulf make dramatic viewing. The humanitarian cost of war is always horrible. The economics of the current situation are less dramatic. The inflation consequences depend on a sustained increase in oil price, not a spike. The world has become less oil dependent to produce economic activity. However, the US affordability crisis may be affected—perception rather than reality matters to affordability, and gasoline prices affect inflation perceptions.