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Gas Down to $1.66/gal

Calculated Risk reports that gas has fallen to $1.66/gal.Gas Price

See the graph. Gas prices are now close to the 2000-2003 price range.

Is this a good thing?

From Calculated Risk last week, looks like no.

For the U.S. economy, I think there are two points worth repeating: 1) this decline in oil prices will significantly reduce PCE for gasoline, oil and other energy goods – and provide a stimulus for U.S. household to either save more, or spend more on other items, and 2) the oil price decline will also impact investment in domestic oil production (also foreign oil production, but that doesn’t direclty impact the U.S. economy).

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