A Balance-Sheet Analysis of the Dutch Economy

October 22, 2021

Preview Citation

Format: Chicago

Ruo Chen. A Balance-Sheet Analysis of the Dutch Economy, (USA: International Monetary Fund, 2021) accessed November 12, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Economic sectors, Expenditure, Financial sector, Financial statements, Household consumption, Labor, National accounts, Pension spending, Pensions, Public financial management (PFM)

Keywords: Balance sheet, Corporation leverage, Cyclicality of the economy, Financial accounts, Financial sector, Financial statements, Global, Gross financial assets, Household, Household consumption, Multinational corporation, Net financial assets, Pension, Pension spending, Pensions, Way household balance sheets interact

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/255
Stock No:

WPIEA2021255
ISBN:

9781589068278
ISSN:

1018-5941

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