Will It Be Déjà Vu All Over Again?

University of Calgary, The School of Public Policy – University of Calgary Publications Series, Volume 2, Issue 1, April 2009

10 Pages Posted: 16 Oct 2017

See all articles by J. C. Herbert Emery

J. C. Herbert Emery

University of Calgary - Department of Economics

Ronald D. Kneebone

University of Calgary - The School of Public Policy; University of Calgary - Department of Economics

Date Written: April 15, 2009

Abstract

The boom and bust in energy prices experienced recently has its parallels in the boom and bust of energy prices in the 1970s and 1980s. The earlier boom period saw the Government of Alberta struggle with restraining spending and so became heavily dependent on high energy prices. When in 1986 energy prices crashed the government suffered a string of large deficits that was followed by draconian cuts to spending. From 2000 to 2008 the government enjoyed another boom in energy prices and again found it difficult to restrain spending. The recent crash in energy prices threatens the government with repeating the earlier experience of deficits followed by dramatic spending cuts. As it prepares its 2009 budget the government has an opportunity to learn from the past and to quickly and decisively put its budget on a path toward a much smaller reliance on energy-related revenues.

Suggested Citation

Emery, J. C. Herbert and Kneebone, Ron, Will It Be Déjà Vu All Over Again? (April 15, 2009). University of Calgary, The School of Public Policy – University of Calgary Publications Series, Volume 2, Issue 1, April 2009, Available at SSRN: https://ssrn.com/abstract=3053700

J. C. Herbert Emery (Contact Author)

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada
403 2205489 (Phone)
403 2825262 (Fax)

HOME PAGE: http://econ.ucalgary.ca/emery.htm

Ron Kneebone

University of Calgary - The School of Public Policy

Calgary, Alberta
Canada

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

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