Macfarlane says world can cope with oil shocks

The world economy is surprisingly good at absorbing price pressures from rising oil prices, said Ian Macfarlane, the outgoing governor of Australia's central bank.

He explained: "There is of course a lot of anxiety about oil and a lot of attention given to the issue worldwide. But what I find most relevant is that we have been able to absorb the increase in oil prices reasonably well, in a way nobody would have predicted two or three years ago."

He also warned that Australia's economy may be du