THE GLOBAL FINANCIAL CRISIS AND INTERNATIONAL LIQUIDITY:THE IMPACT OF PETROLEUM PRICES

Abstract

In recent years, the economic repercussion of rising energy prices have been widely debated by national governments, international institutions, multinational business and economic consultants. In this age of industrialization, transportation and mass production of goods and services, energy represents the key behind rapid socio­economic transformation and sustainable growth. Modern living depends on energy to the extent that no home can afford not to make use of electric power and gas-related products. Such high dependency has linked the future development of mankind to the existence of energy sources to ensure the meeting of man basic needs and the enhancement of productivity growth. Until today, the prospect of developing new sources of energy to substitute for fossil fuel has shown very little sign of encouragement. Despite attempts to investment in various projects related to energy worldwide, the potential for finding a substitute for conventional energy sources remains to be achieved.