In a recent broadcast of BNR Nieuwsradio, Casper de Vries, Professor of Monetary Economics at Erasmus School of Economics, discusses the inflation in the Netherlands. Together with Marijn Jongsma, macroeconomics editor at the Dutch newspaper Het Financieele Dagblad, he analyses the effects on inflation of various policies.
Last month, in September, year-on-year inflation was 17.1%, according to the Dutch Central Bureau of Statistics. This inflation could be reduced if the economy slowed down. However, the government is already indirectly compensating lower incomes significantly. This support leads to an increase in spending and goes completely against the policy of the European Central Bank.
Moreover, the Professor gives his view on the plan of a maximum price on energy. In doing so, he discusses both an internal maximum price, within the European Union, and an external maximum price, which would also apply to countries outside the European Union. The problem with an internal maximum price, according to De Vries, is that the wealthier northern countries will have to bear the cost of this plan. With an external maximum price, there will be a situation where there will no longer be sufficient supplies to the European Union, the Professor said.
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You can listen to the full broadcast from BNR Nieuwsradio, 3 October 2022, here.