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Odd Lots

Isabella Weber On Germany's Plan to Cap the Price of Gas

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.41.6K Ratings

🗓️ 10 November 2022

⏱️ 51 minutes

🧾️ Download transcript

Summary

The surge in gas costs in Europe threatens to impose massive pain on households and cripple energy-intensive heavy industry. So there has been a lot of urgency on the part of governments to figure out a way to ease the pain. Of course, when the problem is a scarcity of energy itself, you can't just throw money at the problem. You can't print more gas molecules. On this episode, we speak with Isabella Weber, economics professor at the University of Massachusetts Amherst, who has been serving on an independent government commission in Germany to formulate a plan to ease the burden. We discuss her work and how price controls in energy play out in practice.

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1:21.4

Hello and welcome to another episode of the AdLots podcast. I'm Joe Wisenthal.

1:26.8

And I'm Tracy Alloway. Tracy, we've talked a lot, obviously, about the big energy crunch

1:33.6

in Europe this year, in Germany, in particular. But we haven't really talked so much about,

1:39.6

you know, what governments are trying to do to ameliorate some of the pain.

1:43.6

The specific policy options. Right. And, you know, I think there seems to be an acceptance or

1:49.6

widespread view that at least not everyone can be directly exposed to sort of the market rate

1:56.5

of energy. Just too much. It's too damaging to a lot of households, particularly lower income

2:02.0

households, but even like some of the surges and just like costs and of heating for this year.

2:07.2

I mean, an extraordinary increase in costs expected. Absolutely. Although I was talking to my

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