Claims

Government policy in the 1970s energy crisis (price controls, import restrictions, federal allocation systems) made the crisis worse by preventing market adjustment and supply reallocation; free market forces allow interconnected energy systems to absorb and redirect supply when disruptions occur (hurricanes, strikes, embargoes).

Countries in fiscal crisis have a limited set of policy options: they can be understood by studying history; examining current conditions allows one to anticipate which policy response a government will likely pursue—a framework for predicting future policy behavior.