Recent Economic and Monetary Trends

The Danish Economy 2009-11

Danmarks Nationalbank's Euro and Dollar Auctions

Danish Mortgage-Credit Bonds during the Financial Turmoil

Carsten Andersen, Market Operations and Claus Johansen, Financial Markets

In many European countries, the financial turmoil in the autumn of 2008 meant that liquidity dried up in the markets for covered bonds. However, issuance still took place in the Danish market. This article outlines a number of reasons why the Danish market differed from other European markets, and the consequences in terms of price formation are explained.

Credit Institutions and Procyclicality

Borka Babic, Financial Markets

Lenders have a tendency to amplify cyclical fluctuations, i.e. to have a procyclical effect. A number of factors, including financial regulation, may affect the lending capacity of credit institutions over a business cycle. Internationally there is agreement that it is necessary to adjust both accounting standards and capital adequacy rules with a view to reducing procyclicality in the financial sector. This article provides and overview of the work currently underway to reduce procyclicality.

Impact of Fiscal Policy during the Crisis

Ann-Louise Winther, Economics

The extent to which fiscal policy can help to stabilise the economy is a key issue during the financial and economic crisis. This article takes a closer look at the fiscal policy pursued during the crisis and its macroeconomic effects. The effect of the fiscal stimulus measures depends on their composition, among other things. Fiscal sustainability also determines the scope for fiscal loosening.

Status of the Faroese Economy, Mid-2009

Niels Bartholdy, Economics

The economic slowdown has spread to the Faroese economy overall, and unemployment is rising rapidly. Fisheries have been affected by lower catches and prices. Favourable price developments for farmed salmon are buoying up export revenue. A drop in imports means that the trade deficit is likely to be more or less eliminated in 2009. Government deficits are increasing.

Economic Mechanisms in Global Climate Policy

Per Callesen, Ministry of Finance

It is sought to reduce global warming by setting targets for reducing CO2 emissions. The economic change can be achieved without jeopardising growth and welfare, and it is possible to gain considerable ground by reducing the most obvious inefficiencies in the existing regulation. This task makes great demands on the international cooperation as regards the necessary instruments.

Press Releases

Tables and Graphs Section

Vol. XLVIII, No. 3