2014 is a live testimony that one event can mean different things in different areas of the globe. The supply glut on the oil market slashed prices by half since June 2014. For the US, this meant lower oil prices at the pump and therefore higher consumer confidence but it also means less pressure on inflation and therefore more time until the Federal reserve decides to increase interest rates. This same event threatened Saudi Arabia’s public finances and its stream of hefty oil revenues.
2014 has also extended the gaps that were drawn back in 2013. While the Federal Reserve brought its quantitative easing program to a halt in 2014, talks sparked about the ECB starting its own bond-buying program to avoid the risks of deflation. While the US economy has shown signs of a strong recovery with unemployment falling below 6%, Europe continues to struggle to regain economic momentum…
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