Investment in Belgium in the Post-War Period

Abstract

Beginning with the monetary reform of October 1944, the maintenance of sound money has been the keystone of economic policy in Belgium. The repercussions of this policy have been felt in all phases of the economic life of Belgium, and particularly in the level and direction of investment. In general, Belgium is a producer of capital goods, both for domestic use and for export, and of semifinished goods with a relatively high elasticity of demand, also for domestic use and export. One-third of the national income is directly dependent on foreign trade. Therefore, the Belgian economy is particularly vulnerable to changes in the general level of economic activity in the world at large, and to import restrictions arising as a result of payments difficulties of its major trading partners. The following pages are an attempt to outline the economic policy of post-war Belgium, with its effects on investment.