OVERHEATING OF THE ECONOMY

Economics

Source: compiled by the editor from various references; see credits.

Economic History

The Netherlands

A tight labor market and firming inflation add to the danger of overheating of the economy. (references)

Denmark

In the late 1990s there was some overheating of the economy as unemployment dropped far below its structural level. (references)

The Netherlands

Sailing on the waves of strong world trade growth, the Dutch economy is predicted to expand by 4.3% in 2000 and to show 4% real growth in 2001. A tight labor market will lead unemployment to fall to a low of 2%. Consumer price inflation, on the other hand, is expected to firm to 2.6% in 2000, and to 3.4% in 2001. Labor market conditions and price developments have led the OECD to send out warnings for overheating of the economy. (references)

Source: compiled by the editor from ICON Group International, Inc.; see credits.

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