The Euro’s Dutch Disease

Source: Forbes

I’ve been aware of the phenomenon called the “Dutch disease” for a long time, but that label is fairly new to me. According to Wikipedia, the term was coined in 1977 by The Economist “to describe the decline of the manufacturing sector in The Netherlands after the discovery of a large natural gas field in 1959.” Dutch exports of gas elevated their exchange rate to levels that made their manufactured goods less competitive.

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