{
  "title": "Financial Sector Reform and Monetary Policy in the Netherlands",
  "publication": "IMF Working Papers, February 1, 1998",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/financial-sector-reform-and-monetary-policy-in-the-netherlands-2511",
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  "summary": "Financial sector liberalization, both domestic and in cross-border transactions, was a major force behind the gradual move to indirect controls and the shift toward full reliance on exchange rate targeting in the Netherlands.",
  "sections": [
    {
      "heading": "Summary and key findings",
      "content": "- Financial sector liberalization, both domestic and in cross-border transactions, was a major force behind the gradual move to indirect controls and the shift toward full reliance on exchange rate targeting in the Netherlands.\n- The paper analyzes the different steps in this process, discusses the main arguments behind the gradual approach, and draws lessons for other countries involved in this process.\n- The paper argues that reforms in the financial sector, liberalization of the capital account, adjustments in supervision and regulation, and modernization of monetary management are strongly interrelated and should be part of a comprehensive reform strategy."
    },
    {
      "heading": "Analytical themes and processes examined",
      "content": "- Sequential reform steps leading from direct controls to indirect monetary controls.\n- The role of domestic financial market liberalization in enabling a shift to exchange rate targeting.\n- Interactions between capital account liberalization and monetary policy implementation.\n- Changes required in supervision and regulation to support liberalized markets and modernized monetary management."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Adopt a comprehensive reform strategy that integrates:\n  - Financial sector reforms,\n  - Capital account liberalization,\n  - Adjustments in supervision and regulation,\n  - Modernization of monetary management.\n- Use a gradual approach to liberalization to manage transitional risks while moving from direct to indirect monetary instruments and toward exchange rate targeting."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Banking, Credit, Credit ceilings, Credit controls, Exchange rates, Financial markets, Foreign exchange, Monetary expansion, Monetary policy, Money, Money markets\n- Keywords: cash reserves, Credit, credit ceiling, Credit controls, credit restriction, exchange bureau, Exchange rates, Financial Sector, Global, market orientation, Monetary expansion, Monetary Policy, money market policy, Money markets, Netherlands, WP\n\n---\n\n Content in this bundle\n\n- Financial Sector Reform and Monetary Policy in the Netherlands - WP/98/19\n  - Financial Sector Reform and Monetary Policy in the Netherlands - WP/98/19 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Financial Sector Reform and Monetary Policy in the Netherlands - WP/98/19 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/financial-sector-reform-and-monetary-policy-in-the-netherlands-2511"
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    "Authors: Paul Louis Ceriel Hilbers",
    "Published: February 1, 1998",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451922585.001",
    "Financial sector liberalization, both domestic and in cross-border transactions, was a major force behind the gradual move to indirect controls and the shift toward full reliance on exchange rate targeting in the Netherlands.",
    "The paper analyzes the different steps in this process, discusses the main arguments behind the gradual approach, and draws lessons for other countries involved in this process.",
    "The paper argues that reforms in the financial sector, liberalization of the capital account, adjustments in supervision and regulation, and modernization of monetary management are strongly interrelated and should be part of a comprehensive reform strategy.",
    "Sequential reform steps leading from direct controls to indirect monetary controls.",
    "The role of domestic financial market liberalization in enabling a shift to exchange rate targeting.",
    "Interactions between capital account liberalization and monetary policy implementation.",
    "Changes required in supervision and regulation to support liberalized markets and modernized monetary management.",
    "Adopt a comprehensive reform strategy that integrates:",
    "Use a gradual approach to liberalization to manage transitional risks while moving from direct to indirect monetary instruments and toward exchange rate targeting.",
    "Subject: Banking, Credit, Credit ceilings, Credit controls, Exchange rates, Financial markets, Foreign exchange, Monetary expansion, Monetary policy, Money, Money markets",
    "Keywords: cash reserves, Credit, credit ceiling, Credit controls, credit restriction, exchange bureau, Exchange rates, Financial Sector, Global, market orientation, Monetary expansion, Monetary Policy, money market policy, Money markets, Netherlands, WP",
    "**Financial Sector Reform and Monetary Policy in the Netherlands - WP/98/19**"
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