The Impact of the Inflation Rate on the Economic Growth of the Netherlands.

Abstract

This study analyzes the connection between the Netherlands’ economic growth and inflation rate. A quantitative research design will be employed in the study, and secondary data collected from credible sources will be used. Variables including GDP per capita growth, interest rates, inflation, currency rates, government spending, import and export rates, and wage growth will all be included in the statistics. Regression analysis will be used to look at the connection between the inflation rate and economic growth, and descriptive statistics will be utilized to evaluate trends and patterns in the data that was gathered. The regression analysis will incorporate control factors including net import growth, government spending, and interest rates. Colvin, Christopher L.; Fliers, Philip (2019) The literature evaluation emphasizes the intricate connection between the Netherlands’s economic growth and inflation rate. While high and unstable inflation rates can have negative effects, reasonable levels of inflation can boost economic activity. Government spending and monetary policy are two major factors that affect this relationship. The research study intends to add to the body of knowledge already in existence by providing a more precise understanding of how inflation impacts economic growth in the Dutch setting. The results will impact economists and policymakers in their creation of efficient plans to control inflation and enhance long-term economic growth Fischer (1993).