Oatil the early 1970s monetary econometrics was virtually
unexplored territory in the Netherlands. The Bank's econometric
research, which I have had the privilege to direct since 1971,
sought to map this territory gradually and thus to obtain the el
ements for building a monetary model for the Netherlands. As
regards the research strategy, I opted for the performance of
studies on specific aspects. The quarterly model MORKMON presented
in this monograph may be regarded as the conclusion of this
research programme. When building the model and writing this
monograph, I made heavy and unre mitting demands on the staff of
the Econometric Research and Special Studies Department. lowe a
debt of gratitude to them all. The contributions made by four of
them - EA. G. den Butter, A. P. Huijser, P. Kramer and we.
Boeschoten - deserve special mention. Summer of 1984 M. M. G. Fase
8 Contents Foreword of the President 5 Preface 7 1 Introductory
remarks 11 1. 1 Prolegomena 11 1. 2 Organization 12 2 The
relationships in the monetary sector 14 2. 1 Balance sheets 14 2.
1. 1 Private sector 14 2. 1. 2 Money-creating institutions 16 2. 1.
3 Central bank 17 2. 1. 4 Government 17 2. 1. 5 Rest of the world
18 2. 2 Balance sheet constraints 19 2. 3 The monetary model in
outline 22 2. 4 The behavioural equations for the monetary sector
25 2. 4."
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