Template-type: ReDIF-Paper 1.0
Author-Name: Muysken, Joan
Author-Email: j.muysken@maastrichtuniversity.nl
Author-Workplace-Name: UNU-MERIT, SBE Maastricht University, and CofFEE-Europe
Author-Name: Meijers, Huub
Author-Email: huub.meijers@maastrichtuniversity.nl
Author-Workplace-Name: UNU-MERIT, SBE Maastricht University
Title: Globalisation and financialisation in the Netherlands, 1995 - 2020
Abstract: The Dutch economy is a small open economy. Due to its persistent large
	 current account surplus, the Dutch net foreign assets have been
	 increasing over time. The financial sector is dominated by special
	 purpose vehicles created for tax reasons. The financial assets and
	 liabilities of these vehicles are issued or held abroad, amounting to
	 around 500 per cent of GDP. The remaining part of the financial sector
	 has almost doubled in size relative to GDP over the past 25 years. While
	 the growth of the banking sector stagnated since the financial crisis,
	 the financial sector continued to grow because of the presence of a
	 funded pension system. We analyse these developments using insights from
	 stock flow consistent models for the Dutch economy that we have
	 developed earlier. This analysis also enables us to highlight the role
	 monetary policy played in facilitating and stimulating the growth of
	 financialisation.
Classification-JEL: E44, B5, E6, F45, G21, G32
Keywords: globalisation, financialisation, quantitative easing, stock-flow
	 consistent modelling
Series: UNU-MERIT Working Papers
Creation-Date: 20220217
Number: 2022-006
File-URL: https://unu-merit.nl/publications/wppdf/2022/wp2022-006.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2022006