Contents

Recent Economic and Monetary Trends

The Pass-Through from Danmarks Nationalbank's Interest Rates to the Banks' Retail Interest Rates
Maria Carlsen, Economics and Charlotte Franck Fæste, Statistics
The article investigates how much and how fast the banks change their interest rates when Danmarks Nationalbank adjusts its monetary-policy interest rates. The results show that the banks follow suit relatively quickly and that the pass-through from Danmarks Nationalbank's interest rates to the banks' interest rates is generally high.

Price Setting Behaviour in Denmark
Bo William Hansen and Niels Lynggård Hansen, Economics
The article presents an extensive empirical analysis of price stickiness and price flexibility in Denmark. The data set applied contains the detailed prices collected by Statistics Denmark for calculation of the Danish CPI. The data set covers the period 1997-2005 and comprises around 2.7 million monthly price observations. On average, Danish consumer prices are adjusted just as frequently as in the euro area, while prices in the USA are more flexible.

Index-Linked Bonds
Anne-Sofie Reng Rasmussen, Market Operations
The volume of index-linked bonds issued in Denmark has grown considerably in recent years. The return on these bonds is dependent on the development in various assets such as equities, exchange rates or commodity prices. The exact characteristics and costs of the products are difficult to assess for the individual investor. Historical data shows that the average return on index-linked bonds has not exceeded the return on government bonds with the same maturity.

The Stability and Growth Pact – Status 2007
Marianne C. Koch, International Relations
The strong economic progress in 2006 has influenced the EU member states' budgetary positions, which in most cases have improved considerably. The article describes key developments and tendencies in the EU's budgetary surveillance in the short, medium and long term.

The Future Financing of the IMF
Katrine Graabæk Mogensen, International Relations
A strong decline in IMF lending has eroded the IMF's income base. As a result, the IMF is investigating new financing models, not least to finance the surveillance that contributes to macroeconomic and financial stability and crisis prevention. In January 2007, an external committee proposed a new IMF financing model and new sources of income, including investment of a part of the member countries' quota resources and investment of the proceeds from the sale of a part of the IMF's gold.

Speech by Governor Nils Bernstein at the Annual Meeting of the Association of Danish Mortgage Banks on 26 April 2007

Press Releases

Tables and Graphs Section

Vol. XLVI, No. 2