Alumnus Job Swank (1983), Director of The Dutch Bank (DNB), was recently interviewed by newspaper ‘ Het Financieel Dagblad’. According to him, the big question, over and over again, is when to bend monetary or fiscal policy. In the 90s, the relationship between monetary economics and real economics destabilized. The strong growth of money supply surprisingly hasn’t led to more inflation.
“Economics is not an exact science. We attempt to shape that reality into a model, with all such limitations. You cannot perceive that model as THE reality.”
Job Swank believes that the crisis in 2008 was caused by too much debt and lack of supervision and too much reliance in the cleansing operating of the market all fueled by the relaxed monetary policy
He concludes that it would benefit the profession if its risks were met with an open and curious mindset.
