Economists have been repeatedly arguing whether plunging oil prices have a positive impact on advanced economies. Some of them believe that cheap black gold prices are beneficial for consumers and business in general; the other point to the possible cuts of investment in energy industry and the adverse effect on financial system.
Francisco Blanch, an analyst at Bank of America Merrill Lynch, looked at this situation in a different way. He says that the sustained price plunge on the oil market will lead to large wealth transfers.
According to Francisco Blanch and a group of analysts, the oil price slump had a good impact on the demand. Unless the prices go up, it can accelerate even further. At the same time, emerging markets, which have been experiencing an economic slowdown recently, can unlock their potential in the consumption sector.
