The political economy of the capital account: Dutch Exportism and its consequences
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2022-08-16
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en
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This thesis tries to explain the 1977 policy shift of the capital account policy of the Dutch central bank from a more restrictive stance on international capital flows to a more permissive attitude towards international capital flows. Mainstream economic theories have thus far not been able to provide a credible explanation of the liberalization of international capital flows. I will use the approach of the regulation school of critical political economy to explain the policy shift on the capital account. Combining the regulation approach with other theories within critical political economy, an explanation is outlined. Before 1977, the capital account supported a specific Dutch political-economic regime that combined stricter financial regulation with export-oriented policies. This included a restrictive stance on certain forms of international capital flows. After the breakdown of the regulated global economy in the 1970s, financial and economic developments gradually undermined effective regulation of the capital account. These developments were the result of a structural crisis that resulted from the contradictions within the capitalist mode of production combined with the concerted efforts of transnational organisations, state apparatuses and individuals that formulated new ideas and policies to further the interest of money-based and financial capital. The Dutch government adapted to the new economic situation by liberalizing the capital account in order to maintain the viability of their export-oriented policy.
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Faculteit der Managementwetenschappen