This report presents an overview of the theory of regulation in general, with special attention for the regulation of banks. Two theories of government regulation are described. The first, normative, theory uses market failures as the justification of government regulation. The second, positive,...

This paper reports on a study conducted on behalf of the Task Force on Electronic Money of the EMI Working Group on EU Payment Systems. For different scenarios the effects of electronic money on seigniorage income of central banks in the EU are calculated. It is shown that the consequences of...

An updated version of the Nederlandsche Bank's generational accounting model is used to assess fiscal sustainability. The model gives net lifetime taxes for current and future generations. In addition, the same model is applied to make forecasts of budget deficit and debt in percentage of gdp....

In this paper an earlier study is extended in order to reflect insights of the endogenous growth theory. Labour productivity is not constant any more but reacts on public investment and the government deficit. The results of this research show that the current fiscal policy puts a much higher...

This report discusses two types of active labour market policy in The Netherlands, wage subsidies and direct job creation. The options for evaluation of these programs are analyzed. It is difficult to assess the effectiveness of this type of policy in a general sense. Separate evaluations of...

This paper describes a model in which monetary shocks have persistent real effects. Starting from the limited participation model of Christiano (1991) with capital adjustment costs as suggested by Dow (1995) it is confirmed that costs of equipment installation and restrictions on consumer...

The paper has two subjects. The first subject is the development of a monetary general equilibrium model with en- dogenous growth. By combining the two-sector endogenous growth model and the limited participation approach, the model is able to explain the empirically observed liquidity effect of...

This paper assesses the performance of core inflation measures based on the structural VAR approach. Since core or monetary inflation is not directly observable, we develop a monetary general equilibrium model that fits real aggregated European data and use this model to generate time series for...

This report provides a critical review of the Boskin-report and discusses possible implications for the cpi in the Netherlands. Moreover, two recent American suggestions to reduce the bias are discussed. The report concludes that although it is likely that the cpi overestimates the increase of...

In this paper we discuss whether the introduction of the euro may cause price changes. Besides a critical survey of the theoretical arguments supporting price effects, we discuss the empirical evidence on price effects obtained from comparable events. Neither the theoretical arguments nor the...