Introduction

Important peacetime changes in society are normally too slow and gradual to be discernible while they occur. When seen in this perspective, developments in the oil markets since 1973 have been less than normal. One is tempted to say that in 1973 the world economy witnessed a further round of eating the apple from the tree of knowledge and that we are still digesting. Although the economics (and neighboring) professions have had eight years for reflection and research, the process of identifying and assessing the impact of rising energy prices on the world economy is likely to go on for some time to come. Needless to say, such an analysis is complicated by the fact that the rising trend of energy prices has brought about changes in important mechanisms in the world economy (including the process of economic policy-making).