A Balance-Sheet Analysis of the Dutch Economy

A Balance-Sheet Analysis of the Dutch Economy
Author :
Publisher : International Monetary Fund
Total Pages : 22
Release :
ISBN-10 : 9781589068278
ISBN-13 : 1589068270
Rating : 4/5 (270 Downloads)

Book Synopsis A Balance-Sheet Analysis of the Dutch Economy by : Ms. Ruo Chen

Download or read book A Balance-Sheet Analysis of the Dutch Economy written by Ms. Ruo Chen and published by International Monetary Fund. This book was released on 2021-10-22 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Dutch economy is characterized by substantial financial balance sheets in the private sector. Uncommonly large gross financial assets and liabilities are found in the financial sector, whereas households own significant net financial wealth. The large gross financial assets and liabilities reflect a dominant role of multinational corporations (MNCs). Despite their size, these financial positions have not brought significant financial stability risks to the country. On the other hand, Dutch households’ long balance sheets have been associated with depressed consumption and volatile real estate investment, which has probably exacerbated the cyclicality of the economy. The expected reform of the pension system is likely to change the way household balance sheets interact with private consumption.


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