The two papers collected in this volume are both concerned with the economic consequences of instability and uncertainty of energy prices. The policy options available in Sweden for dealing with the problems are discussed.
Both papers report on simulation experiments carried out on macro-models for the Swedish economy, specially designed for this purpose at IUI and the Stockholm School of Economics respectively. These simulations, covering the period up to the turn of the century, exemplify the possible impact of future oil price hikes and the effects of policies aimed at easing the domestic adjustment.
Apart from the particular insights and policy recommendations to be drawn from these simulations, the integration of energy policies with the wider problem of macro-economic stabilization should prove both instructive and helpful in avoiding many of the pitfalls encountered in more specialized energy studies.
