How much of the higher price of gasoline is the Fed's fault?
To a first approximation, zero. Oil is priced in dollars in the international market. The falling dollar has no effect on the price of oil. And inflation is a tiny contributor to the huge increase in gasoline prices. The huge increase is due to the fact that a lot of people want to consume oil, but producers have been slow to supply additional quantities. When demand goes up and supply doesn't, prices rise.
We want to hear what you think about this article. Submit a letter to the editor or write to firstname.lastname@example.org.