Kingdom of the Netherlands-Netherlands: Selected Issues

International Monetary Fund

No 2017/078, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper focuses on a steady increase in current account surpluses in ”Surplus 3” countries—Germany, the Netherlands, and Switzerland—since the mid-1990s. In Germany and the Netherlands, nonfinancial corporations seem to be behind the rising surpluses. In these countries, increasing corporate profits have not been converted into dividends, keeping a lid on consumption. In Switzerland, household savings seem to explain the bulk of the current account surplus: both mandatory and voluntary savings have been on an increasing trend since 2000. Trending net contributions to pension funds since 2000 and rising equity contribution for housing purchases are likely drivers.

Keywords: ISCR; CR; current account surplus; NICs; surplus; income; elasticity assumption; income effect; inflation expectation; elasticity case; labor tax wedge; lending-borrowing balance; substitution effect; government savings-investment balance; current account dynamics; savings-investment surplus; Current account surpluses; Labor supply; Current account; Real effective exchange rates; Trade balance; Global; Europe (search for similar items in EconPapers)
Pages: 30
Date: 2017-04-03
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