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Sunday, January 30, 2011

Geopolitical Instability and Oil Shocks

James Hamilton at Econbrowser has a post that's as good on this subject as I could hope to write: http://www.econbrowser.com/archives/2011/01/geopolitical_un.html

I suspect that the outcome in Egypt will not be one in which the country is run by a radical government that seeks to send the West a message by shutting down the Suez Canal, but the markets may be wise in slightly discounting that possibility.

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