Brendan Keenan: It's 1980 -- and the oil shock is still wreaking havoc on our economy
For the month of August, Brendan Keenan looks back on four decades of economic ups and downs, with the columns he might have written, had he known then what he does now. This week -- 1980
A combination of difficulties abroad and government foolishness at home have brought the country to an extraordinary crisis. For the second time in a decade, a huge increase in the price of oil has wreaked havoc on the global economy.
The cost has more than doubled in the past 18 months, producing a deadly combination of inflation in prices and deflation in growth.
The economies of the OECD are expected to grow by just 1.25pc this year, compared with 3.25pc in 1979. The performance of the Irish economy will be even worse, because previous borrowing and excess growth mean there is no room for fiscal stimulus.