By appropriately timing the release of liquidity to the financial system to coincide with the auctions of government securities, the Reserve Bank ensured a relatively normal liquidity conditions in the markets and in the process facilitated smooth conduct of the government’s market borrowing programme.
As I said, the Dutch business cycle has become more volatile recently, as well as more synchronized with the US. Both observations are in contrast to the global picture of more moderate cycles with stable synchronization. In my opinion, these atypical features of the Dutch business cycle can be explained in the terms that I used to describe the global picture.