Philip Jefferson Discusses Economic Recovery and
Gas Prices in The Journal News
by Michael Lott
Philip Jefferson, professor of Economics, was quoted in a column in the Lower Hudson Valley Journal News about the effect that economic recovery will have on gas and fuel prices. Jefferson says that he expects people will drive more as the economy recovers, causing gas prices to rise. However, he doubts that we will see the $4 highs the country dealt with in the summer of 2008.
According to Jefferson, many families are still dealing with a loss of wealth that will cause them to behave more frugally—and this will extend to their driving habits. "Many households are in the process of rebuilding their balance sheets," Jefferson said. "I don't think that you will immediately see the large SUVs and Hummers back on the road once the labor market improves a bit." He also cites potential for geopolitical instability in the Middle East as a factor in oil prices.
Jefferson is a former Federal Reserve Board research economist and teaches macroeconomics, monetary economics, and econometrics.