Dutch Disease
Contents
Unveiling the Dynamics of Dutch Disease
Discover the intricacies of Dutch disease, an economic phenomenon stemming from the sudden appreciation of a nation's currency due to the exploitation of natural resources. Explore its origins, effects, and real-world examples to understand its implications on national economies.
Deciphering Dutch Disease
Delve into the core concepts of Dutch disease, examining how the surge in currency value can disrupt a nation's economy. Unravel the interconnected effects of decreased price competitiveness and increased imports, leading to long-term consequences such as unemployment and economic imbalance.
Tracing the Origin of Dutch Disease
Explore the historical roots of Dutch disease, dating back to The Netherlands' experience with natural gas discovery in the North Sea. Understand how newfound wealth and oil exports led to a sharp rise in currency value, triggering unemployment and capital investment decline, as coined by The Economist in 1977.
Illustrative Examples of Dutch Disease
Analyze notable instances of Dutch disease, including its impact on Great Britain during the 1970s oil price surge and Canada's experience with oil sands exploitation in the 2010s. Examine how fluctuations in currency value and manufacturing sector competitiveness reflect the complexities of this economic phenomenon.