Putting Oil Prices in Perspective

From Greg Mankiw.

"Given the huge decline in oil prices over the past year, I thought it might be useful to put the current price in some historical perspective. Below is the price of oil relative to wages. Roughly, the graph shows the number of hours a production worker needs to work to make enough to buy one barrel of crude oil. What is most striking to me how little long-term trend there is (despite great volatility) and that the current level is very much normal by historical standards.

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