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  1. By using monetary policy to control the cost of borrowing, the ECB influences how much consumers and businesses are able to spend and invest. This in turn affects the prices of products and services. This means the ECB influences prices and inflation through interest rates.

  2. Key policy insights. Abstract. The Netherlands has weathered the economic shock from COVID-19 relatively well thanks to structural strengths and emergency policies put in place. Continued fiscal support is needed to support the recovery, but it should become more targeted to allow structural change.

    • What type of monetary policy does the Netherlands have?1
    • What type of monetary policy does the Netherlands have?2
    • What type of monetary policy does the Netherlands have?3
    • What type of monetary policy does the Netherlands have?4
    • What type of monetary policy does the Netherlands have?5
  3. The government combines a rigorous and stable microeconomic policy with wide-ranging structural and regulatory reforms. The government has gradually reduced its role in the economy since the 1980s. Privatization and deregulation is still continuing.

    • Calendar year
    • Euro (EUR, €)
    • 17,589,513 (6 January 2022)
  4. Headline inflation is projected to reach 15.4% in the fourth quarter of 2022 before moderating over 2023 to an annual average of 8.5%, aided by the energy price cap, and to 4.2% on average in 2024 as tighter monetary policy takes effect, although the removal of the price cap could add to upward pressure on inflation.

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  6. In the European Monetary System, the monetary policies of France, the Netherlands, Spain or Italy were based on the monetary policy conducted by the Bundesbank. This was not sustainable either, as the 1992-93 crisis showed. And this was one of the reasons for the creation of the euro.

  7. Financial and monetary policy. Most EU countries have allowed their national debt and budget deficits to rise to unsustainable levels. This poses risks to the European economy and the stability of the euro. Stricter rules and reforms must be introduced to improve the situation in the EU and prevent a new European crisis.

  8. This paper on the Kingdom of the Netherlands—Netherlands was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on October 26, 2021.

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