- DNBulletin: DNB experiments with blockchain technology
Blockchain technology as yet fails to meet the very high demands of a financial market infrastructure. The experiments we carried out with this technology led us to this conclusion. Among the principal limitations are capacity shortages, inefficiency caused by high energy consumption, and a lack of full certainty that a payment is completed. However, blockchain technology could improve a financial market infrastructure's resilience to external attacks, at the expense of its capacity and efficiency.
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- DNBulletin: Supervision should take the financial sector's heterogeneity into consideration
- There are indications of increased homogeneity among banks. More attention should be given to promoting heterogeneity in the financial sector, as this helps to improve financial stability. This is the conclusion of a study into proportional and effective supervision, which DNB published today. A more diverse financial sector reduces the impact of an external shock on financial stability.
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- DNBulletin: Structural reforms needed right now
''Modernising the economic structure by implementing structural reforms is perhaps the greatest challenge for the euro area," said DNB President Klaas Knot, at the launch of “Structural Reforms: Moving the economy forward”, a DNB-edited publication.
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- DNBulletin: Dutch consumers increasingly use their smartphones for person-to-person (P2P) payments
- While most P2P payments are still made in cash, the number of smartphone payments is on the rise. Contrary to payments at points of sale (41.4% cash payments and 58.1% electronic payments), cash payments are still the standard for P2P transactions, with 72% being made in cash. The number of smartphone payments in P2P transactions is steadily increasing, however. Compared to 2016, the number of smartphone transactions between family members, friends, colleagues and other acquaintances has tripled to 96 million, which equals 21% of all P2P transactions between acquaintances. Consumers also use their smartphones for other types of transactions, such as for school- and sport-related activities and charities, but to a lesser extent. These data were revealed in a joint study undertaken by the Dutch Payments Association and De Nederlandsche Bank (DNB) into the use of cash and electronic payments in the Netherlands in 2017.
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- DNBulletin: Age effect depresses wage growth during economic revival
- The ageing of the population is having a structural upward effect on wage growth at the macro level. In addition to this, there is a cyclical age effect at play: during recessions, wage growth comes under upward pressure, while downward pressure occurs during economic upswings.
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- DNBulletin: Financial crisis widened price level differences in Europe, but not in the United States
- Price level dispersion in the euro area declined sharply since the 1960s, to a level comparable to the differences between US city regions. However, DNB research shows that price level dispersion in the euro area is increasing again, partly as a result of the financial crisis. This is an indication of incomplete economic integration.
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- DNBulletin: Labour market flexibilisation linked to fall in labour income share
- A data analysis involving eight Dutch industries between 1996 and 2015 shows that the decline of the labour income share (LIS) coincides with increased labour market flexibilisation. The weaker negotiating position of workers on flexible contracts compared to that of employees on permanent contracts may explain this decline.
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- DNBulletin: Strong correlation between consumption and house prices in the Netherlands
- According to an international comparative analysis, the Netherlands is one of a group of countries with a relatively strong relationship between house prices and private consumption. The strength of this relationship mainly depends on the relative share of homeowners with a mortgage loan. This suggests that institutional differences between mortgage markets (e.g. in the tax treatment of mortgage interest rates) probably play a substantial role in explaining why the relationship between house prices and private consumption is so much stronger in some countries.
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- DNBulletin: Favourable growth prospects mitigate impact of rising interest rates on investment
- A DNB study has revealed that there is considerable variation in the degree to which firms adjust investment in response to changes in interest rates. Firms with favourable growth prospects in the medium term are less likely to reduce investment in the light of a rise in interest rates. Future rises in interest rates could therefore be accompanied by a relatively modest decline in investments, in light of the current favourable economic outlook for the euro area.
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- DNBulletin: Accuracy of macroeconomic projections sensitive to cyclical fluctuations
The projections for the Dutch economy include significant prediction errors. One of the underlying reasons is an underestimation of the economy's cyclicity. Overall, projections are overly optimistic in the downward phase of the cycle and overly pessimistic in the upward phase. This phenomenon has a statistical as well as an economical cause.
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- DNBulletin: A closer look at inflation measures in the euro area and the United States
Adequately comparing inflation in the euro area with the US - which is required for example to compare monetary policy - involves taking into account the different ways of including owner-occupiers' housing costs in determining inflation. If these imputed housing costs are excluded, the inflation figures in the euro area and the US seem to have been slowly converging over the past few years.
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- DNBulletin: Dutch public positive about deposit guarantee scheme
Three quarters of the Dutch public are aware that deposits are guaranteed up to a certain amount in the event of bank failure. They are less familiar with the specific features of the Deposit Guarantee Scheme (DGS), such as the maximum payout deadline of 20 working days. A study commissioned by DNB shows there is still room for improvement, considering that greater awareness is essential to promoting confidence in the industry.
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- DNBulletin: Almost half of all Dutch consumers are active on peer-to-peer markets
A survey reveals that almost half of Dutch consumers use peer-to-peer markets, a figure that is expected to rise further. The most commonly mentioned reason for using these platforms is to earn or save money. Factors that keep consumers from using peer-to-peer markets are uncertainty about the reliability of suppliers and demanders and the quality of products and services offered, and uncertainty about payments.
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- DNBulletin: Why protectionism does not work
- Protectionism is back on the agenda, not least due to anti-free trade rhetoric from across the Atlantic Ocean. However, the advanced globalisation has made trade relations so complex that protectionism distorts production processes and harms consumers' purchasing power.
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- DNBulletin: Relatively small measures could strengthen the EMU
- The Economic and Monetary Union (EMU) has been significantly strengthened in response to the crisis. The balance between the degree to which Member States share risks and have a say in each other's policies threatens to become skewed, however. That balance can be re-stored by simplifying and tailoring budgetary and other rules, adopting clear procedures for the resolution of unsustainable government debts and completing the banking union. These are the main conclusions of DNB's Occasional Study "Capi-talising on the euro".
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