Template-type: ReDif-Paper 1.0
Author-Name: Meijers H.H.M. 
Author-Name: Muysken J. 
Author-Name: Sleijpen O.C.H.M. 
Author-workplace-name: UNU-MERIT
Title: The deposit financing gap: Another Dutch disease
Abstract: In the last two decades the Netherlands have experienced an increase in  real-estate prices, accompanied by an increase in mortgages and a marked  decline in household savings. As a consequence banks are faced with a  large retail funding gap outstanding mortgage debt is insufficiently  matched by retail deposits, whereas other funding possibilities of banks  have increasingly been constrained - also due to their large foreign  exposures.   In this paper we argue that traditional macroeconomic models cannot  analyse this phenomenon appropriately since they lack a proper model of  the financial sector and underestimate the potential for interactions  between the monetary and the real sphere. We present a stock-flow  consistent approach developed by Godley and Lavoie as a valuable  alternative to traditional and new Keynesian macroeconomic models and we  use this approach to analyse the deposit financing gap for the  Netherlands.
Keywords: Current Heterodox Approaches: General; Financial Markets and the Macroeconomy; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; 
Classification-JEL: E44; B50; E60; G21; .
Series:  Working Papers
Creation-Date: 2014
Number: 071
File-URL: http://pub.maastrichtuniversity.nl/1f8cc684-8222-4b72-9a1d-6cb65d110e36
File-Format: application/pdf
File-Size: 2389234
Handle: RePEc:unm:unumer:2014071