Kingdom of the Netherlands–the Netherlands Selected Issues

This Selected Issues paper explores the nature of the recent acceleration of inflation in the Netherlands, taking into consideration different perspectives. The paper also presents different measures of inflation and the methodological discrepancies among the indicators considered. It also presents...

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Bibliographic Details
Corporate Author: International Monetary Fund European Dept
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2023
Series:IMF Staff Country Reports
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Kingdom of the Netherlands–the Netherlands  |b Selected Issues 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2023 
300 |a 83 pages 
651 4 |a Netherlands, The 
653 |a Energy: Demand and Supply 
653 |a Labour; income economics 
653 |a Environmental Economics 
653 |a Natural Disasters 
653 |a Deflation 
653 |a Climate 
653 |a Climate change 
653 |a Housing 
653 |a Housing; Prices 
653 |a National accounts 
653 |a International organization 
653 |a Property & real estate 
653 |a International institutions 
653 |a Global Warming 
653 |a International Economics 
653 |a Macroeconomics 
653 |a Energy prices 
653 |a International Agreements and Observance 
653 |a Climatic changes 
653 |a Inflation 
653 |a International Organizations 
653 |a Natural Disasters and Their Management 
653 |a Infrastructure 
653 |a Monetary economics 
653 |a Economic Development: Urban, Rural, Regional, and Transportation Analysis 
653 |a Environment 
653 |a International agencies 
653 |a Housing Supply and Markets 
653 |a Price Level 
653 |a Saving and investment 
653 |a Prices 
653 |a Monetary policy 
653 |a Natural disasters 
653 |a Monetary Policy 
653 |a Money and Monetary Policy 
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520 |a This Selected Issues paper explores the nature of the recent acceleration of inflation in the Netherlands, taking into consideration different perspectives. The paper also presents different measures of inflation and the methodological discrepancies among the indicators considered. It also presents an empirical assessment on the main drivers of inflation through the Phillips-Curve estimation. The paper also analyses the particularities of the Dutch energy mix compared to other EA peers, and the pass-through from wholesale to retail gas and electricity prices. In addition, as increasing inflation has raised concerns for a potential wage-price spiral, and presents empirical evidence on how the distribution of the total remuneration of productive factors—capital (profits) and labor (wages)—worked in the past. As risks of high inflation persistence increase, the effects of the loss of purchasing power for households will be also heterogeneous among different income quintiles, with unclear effects on demand and economic activity overall. The capacity of the Dutch economy to adapt to the new energy environment and to improve productivity is key to preserving employment, growth, and profits