Question

Which device may be usef to prevent the spreas of duch diseases?

Answer 1

The term “Dutch Disease” originated in the Netherlands during the 1960s, when the high revenue generated by its natural gas discovery led to a sharp decline in the competitiveness of its other, non-booming tradable sector.

Dutch disease is the negative impact on an economy of anything that gives rise to a sharp inflow of foreign currency, such as the discovery of large oil reserves. The currency inflows lead to currency appreciation, making the country's other products less price competitive on the export market.

Answer 2

The Dutch disease is a major market failure originated in the existence of .... other sectors, preventing those sectors from developing despite their use of state-of-the-art technology .