A canonical quasidegenerate Rayleigh-Schrodinger perturbation theory,
correct through fourth order in the energy, is explored for a block-di
agonal unperturbed Hamiltonian. The theory is developed completely wit
hin a Lie Algebra in Hilbert space. Explicit equations for n-particle
transition elements in terms of solutions of simultaneous linear equat
ions are presented. A two-dimensional anisotropic anharmonic oscillato
r is used to provide numerical results. The perturbation theory is sho
wn to be stable under small separation of model and complement spaces.
An iterative variant of the fourth-order perturbation theory is intro
duced; the iterative variant is related to the non-iterative one in mu
ch the same way as nondegenerate coupled cluster theories are related
to nondegenerate perturbation theory. The quasidegenerate coupled clus
ter theory appears to be stable in the presence of multiple intruder s
tates.