Expert quote: "Recent uncertainty in oil markets has also been associated with higher oil prices, which is a stark change from the previous decade. Consequently, policymakers may face more frequent supply shocks as well as an uncomfortable combination of elevated inflation with softer economic activity in the near term." Specifically, the researchers highlight the impact of this shift on oil prices. "Recent uncertainty in oil markets has also been associated with higher oil prices, which is a stark change from the previous decade," Mertens and Wasserburger wrote. In a demand-driven economy, higher demand leads to more economic activity and higher inflation, which brings about higher yields and rates, the analysis notes, just as a dip in demand curbs activity, inflation, yields and rates.