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(CEP News) Frankfurt - The oil crisis in the 1970s showed the importance of stable prices, European Central Bank President Jean-Claude Trichet said during his press conference on Thursday.
However, despite similarities between the increases in oil prices these days and the oil price shocks of the 1970s, Trichet brushed aside the notion that the two situations were identical. Today's oil shock is demand-driven, Trichet noted, adding that the oil price shock in the 70s was supply driven, engineered by OPEC. While Trichet said that the ECB does not even pretend to be able to influence commodity prices, he did suggest that governments limit oil subsidies to consumers and pointed to a further need for refineries. By Todd Wailoo,
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, edited by Cristina Markham,
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