Template-type: ReDIF-Paper 1.0
Author-Name: Meijers, H. 
Author-Email: h.meijers@maastrichtuniversity.nl
Author-Workplace-Name: SBE, Maastricht University, UNU-MERIT
Author-Name: Muysken, J.
Author-Email: j.muysken@maastrichtuniversity.nl
Author-Workplace-Name: SBE, Maastricht University
Author-Name: Sleijpen, O.
Author-Email: o.sleijpen@maastrichtuniversity.nl
Author-Workplace-Name: SBE, Maastricht University
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 as 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.
Classification-JEL: E44, B50, E60, G21
Keywords: Real-estate prices, Mortgages, Household savings, Retail funding gap,
	 Macroeconomic models, Stock-flow consistent approach, Netherlands 
Series: UNU-MERIT Working Papers
Creation-Date: 20140731
Number: 2014-071
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-071.pdf
File-Size: 2389 Kb
Handle: RePEc:unm:unumer:2014071