Tuesday , June 25 2019
Home / FT Alphaville / How to diagnose your own Dutch disease

How to diagnose your own Dutch disease

Summary:
Imagine that you are the finance minister of a small, developing country that has just discovered an ore belt rich in cobalt, a metal that has more than doubled in price over the last five years. You, a capable technocrat, are familiar with Dutch disease. You know that the sudden discovery of reserves of a high-value commodity can cause sclerosis in other industries, particularly manufacturing, as happened in The Netherlands after the discovery of natural gas in the late 1950s.Now: imagine you are the Secretary of the Treasury of the United States of America. For "cobalt-rich ore," substitute "dollars," or "dollar-denominated assets," or perhaps just "Treasuries." You still need to worry about Dutch disease. We just never talk about it that way, because the whole framework of

Topics:
FT Alphaville considers the following as important:

This could be interesting, too:

Miles Kimball writes Data on Asian Genes that Discourage Alcohol Consumption Explode the Myth that a Little Alcohol is Good for your Health

Bradford DeLong writes Weekend Reading: John Maynard Keynes (1937): How to Avoid a Slump

Paul Krugman writes Self-Inflicted Medical Misery

Bradford DeLong writes Brad DeLong's Grasping Reality 2019-06-24 20:12:05

Imagine that you are the finance minister of a small, developing country that has just...

FT Alphaville
FT Alphaville is a free daily news and commentary service giving finance professionals the information they need, when they need it. In a world where market professionals are inundated with information there is a pressing need to edit and filter, and hopefully sow a few ideas along the way. That’s where the FT Alphaville team comes in.

Leave a Reply

Your email address will not be published. Required fields are marked *