Economic velocity and the price of energy

[c1ue]

iTulip has spoke at length on the Output Gap Trap as well as Peak Cheap Oil.

There are also all sorts of numbers relating oil prices and GDP.

What I'm wondering is: has iTulip done any work to try and determine the effect of Peak Cheap Oil on 'economic velocity'?

Economic velocity - I am defining as the P/C economy's equivalent of monetary velocity: not the suppy of P/C output per se but the speed at which it circulates.

I may be terming this wrong, but it seems that the cost of oil relates directly to the cost of transportation, which in turn would affect 'economic velocity'.

If this long train of thought holds, then the question is: Peak Cheap Oil isn't just about oil prices and their direct impact on GDP, but Peak Cheap Oil and its severe oscillations of oil prices would seem to impact transportation costs hence 'economic velocity'.

Perhaps above and beyond the outright GDP impact?

[*T*]

Re: Economic velocity and the price of energy

What do you mean by P/C and economic velocity?

[c1ue]

Re: Economic velocity and the price of energy

P/C = production/consumption, as opposed for FIRE (Finance, Insurance, Real Estate, Education)

Economic velocity : concept similar (if valid) to monetary velocity - i.e. it isn't the amount of money per se which governs effects, but the speed at which said money moves through the financial system as well. For economic velocity, or perhaps more correctly P/C velocity, my question is whether widely varying transportation costs will affect P/C velocity - the speed at which goods move through the production/consumption system.