WASHINGTON (PROJECT SYNDICATE) - Is today's energy crisis as serious as similar previous ones - particularly the 1970s oil shocks? That question is being asked around the world, with consumers hit by high prices, businesses worried about energy supplies, political leaders and central bankers struggling with inflation, and countries confronting balance of payments pressures.

So, yes, this energy crisis is as serious. In fact, today's crisis is potentially worse. In the 1970s, only oil was involved, whereas this crisis encompasses natural gas, coal, and even the nuclear fuel cycle. In addition to stoking inflation, today's crisis is transforming a previously global market into one that is fragmented and more vulnerable to disruption, crimping economic growth.