This paper discusses the problems the Dutch economy has experienced during the last seven years, pinpoints problems for future developments of the Dutch economy, and surveys the political-economic debate in the Netherlands. The focus is on the unemployment problem, still unsolved and therefore...

Three funds are necessary to manage an oil windfall: intergenerational, liquidity and investment funds. The optimal liquidity fund is bigger if the windfall lasts longer and oil price volatility, prudence and the GDP share of oil rents are high and productivity growth is low. We apply our theory...