The world is experiencing "the first truly global energy crisis," International Energy Agency Executive Director Fatih Birol said on the release day of the new episode of the "Economics out Loud" podcast with NES Visiting Professor Alexander Malanichev. By coincidence, he talked about the current energy crisis. There are many similarities between the shocks of the 1970s and the present day. For example, expensive oil and gas have become fuel for accelerating inflation. The rise in energy prices is fueled by political confrontation. Finally, Western economies again intend to come out of the crisis renewed and with smaller dependence on former suppliers and non-renewable energy sources in general.
What will Europe face this winter? How will the oil and gas markets change? Will the West manage to deprive Russia of at least part of the petrodollars, and will Russia manage to redirect its oil and gas exports from Europe to Asia? What lessons can we learn from the 1970s? These questions were discussed in the podcast.