Will ageing lead to a higher real exchange rate for the Netherlands?
Long-term projections for the Netherlands indicate that demand for nontradables â€“ e.g. health care services â€“ will increase relative to supply due to population ageing. If this leads to higher future real exchanges rates this will erode the return of the savings currently made to prepare for ageing. This paper explores the magnitude of potential price effects using a modified version of the ‘two country, four commodity framework’ developed by Obstfeld and Rogoff (2005) to explore the exchange rate effects of the balance of payments reversal in the US. When these price effects are substantial, this may have serious consequences for policies to enhance national saving in the Netherlands.
|Date of creation:||Dec 2011|
|Contact details of provider:|| Postal: Postbus 80510, 2508 GM Den Haag|
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kenneth Rogoff & William Brainard & George Perry, "undated".
"Global Current Account Imbalances and Exchange Rate Adjustments,"
33687, Harvard University OpenScholar.
- Maurice Obstfeld & Kenneth S. Rogoff, 2005. "Global Current Account Imbalances and Exchange Rate Adjustments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(1), pages 67-146.
- Axel Boersch-Supan, 2001. "Labor Market Effects of Population Aging," NBER Working Papers 8640, National Bureau of Economic Research, Inc.
- Jonathan David Ostry & Carmen Reinhart, 1991.
"Private Saving and Terms of Trade Shocks; Evidence From Developing Countries,"
IMF Working Papers
91/100, International Monetary Fund.
- Jonathan D. Ostry & Carmen M. Reinhart, 1992. "Private Saving and Terms of Trade Shocks: Evidence from Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 39(3), pages 495-517, September.
- Donghoon Lee & Kenneth I. Wolpin, 2004.
"Intersectoral Labor Mobility and the Growth of the Service Sector,"
PIER Working Paper Archive
04-036, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Donghoon Lee & Kenneth I. Wolpin, 2006. "Intersectoral Labor Mobility and the Growth of the Service Sector," Econometrica, Econometric Society, vol. 74(1), pages 1-46, 01.
- Bart Hobijn & David Lagakos, 2003. "Social security and the consumer price index for the elderly," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 9(May).
- Leon Bettendorf & A. Horst & N. Draper & C. Ewijk & R. Mooij & H. Rele, 2011. "Ageing and the Conflict of Interest Between Generations," De Economist, Springer, vol. 159(3), pages 257-278, September.
- Horvath, Michael, 2000. "Sectoral shocks and aggregate fluctuations," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 69-106, February.
- Mendoza, Enrique G, 1991. "Real Business Cycles in a Small Open Economy," American Economic Review, American Economic Association, vol. 81(4), pages 797-818, September.
When requesting a correction, please mention this item's handle: RePEc:cpb:discus:197. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.