Huge gas discovery off Cyprus

A big boost for the Cypriot economy, with the news that ExxonMobil has discovered large natural gas deposits. You should be able to think of the possible benefits of this for the supply-side and, by definition, LRAS.

However, the experience of some economies is that natural resources are a curse, not a blessing. In LICs we talk of the 'resource curse', in high income countries we talk of 'Dutch disease' - you might think about what this means and why it happens. And then you might reflect upon whether the discovery of natural gas is going to be as beneficial as it might first appear.

Hint: you might think about what's likely to happen to the value of the 'Cypriot' currency in response to this news. But what is the currency of Cyprus? And what are its major industries?