Price formation and the inflationary process in a small open economy (The Netherlands)

De Economist ◽  
1975 ◽  
Vol 123 (4) ◽  
pp. 680-722 ◽  
Author(s):  
W. Driehuis ◽  
A. van Heeringen ◽  
P. de Wolff
2010 ◽  
Vol 84 (4) ◽  
pp. 737-750 ◽  
Author(s):  
Keetie Sluyterman

The organization of economic activities differs among countries and over time. Differences between nations have been highlighted in academic discussions about national business systems and the varieties of capitalism. This group of articles about the Dutch business system contributes to these debates by offering new empirical research from the perspective of a small, open economy and highlighting changes that have occurred during the second half of the twentieth century. While they discuss developments in the Netherlands, the articles also explore general themes, including corporate governance, cartels, and the organization of multinational companies. While the articles show that business systems are in constant flux, comparisons between the Dutch and U.S. systems seem to suggest that each moves at a different pace. A particularly striking aspect of the Dutch stories is the large impact of developments abroad.


2010 ◽  
Vol 10 (3) ◽  
pp. 389-415 ◽  
Author(s):  
ALESSANDRO BUCCIOL ◽  
ROEL M. W. J. BEETSMA

AbstractWe explore the implications of alternative methods of discounting future pension outlays for the valuation of funded pension liabilities. Measured liabilities affect the asset–liability ratio of pension funds and, thereby, their policies. Our framework for analysis is an applied many-generation OLG model describing a small open economy with heterogeneous agents and a two-pillar pension system (with pay-as-you-go and funded tiers) calibrated to that in the Netherlands. We compare mark-to-market discounting against various alternatives, such as discounting against a moving average of past market curves or a curve that is constant over time. The pension buffer is stabilized by adjusting indexation and contribution rates in response to demographic, economic and financial shocks in the economy. Mark-to-market valuation of liabilities produces substantially higher volatility in the pension buffers, but it also generates slightly higher aggregate welfare.


2002 ◽  
Vol 52 (1) ◽  
pp. 57-78
Author(s):  
S. Çiftçioğlu

The paper analyses the long-run (steady-state) output and price stability of a small, open economy which adopts a “crawling-peg” type of exchange-rate regime in the presence of various kinds of random shocks. Analytical and simulation results suggest that with the exception of money demand shocks, an exchange rate policy which involves a relatively higher rate of indexation of the exchange rate to price level is likely to lead to the worsening of price stability for all types of shocks. On the other hand, the impact of adopting such a policy on output stability depends on the type of the shock; for policy shocks to the exchange rate and shocks to output demand, output stability is worsened whereas for the shocks to risk premium of domestic assets, supply price of domestic output and the wage rate, better output stability is achieved in the long run.


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