Monetary Review

Recent Economic and Monetary Trends

Volatility in the Overnight Money-Market Rate
Allan Bødskov Andersen, Economics
The Danish overnight money-market rate is influenced by the banks’ opportunities to borrow from and place liquidity with Danmarks Nationalbank. The analysis shows that a large share of the fluctuation in the overnight rate is explained by this interaction with the monetary-policy instruments. However, other market conditions also play a role.

The BRIC countries
Thomas Haugaard and Jens Anton Kjærgaard Larsen, International Relations
There is increasing focus on the four large emerging market economies: Brazil, Russia, India and China, called the BRIC countries. The article describes a number of the macroeconomic characteristics of these countries, and assesses their role in the global economy. The long-term perspectives for these economies and factors of significance thereto are also described.

The EU Constitutional Treaty and EMU
Tina Winther Frandsen, International Relations
The overall framework for the EU’s new Constitutional Treaty is presented in the introduction to the article, followed by an overview of the issues of significance to economic and monetary cooperation in the EU. The Constitutional Treaty confirms the existing framework for EMU but does, however, provide a few adjustments to the rules.

Transparency in Capital Markets
Jesper Ulriksen Thuesen, Financial Markets
Different market participants often have diverging interests in transparency in relation to the actual trading function in capital markets. The various markets also require different transparency solutions. The design of the overall new EU regulation on transparency will have great impact on the development of the European capital markets.

Revision of the Weights for Calculation of Danmarks Nationalbank’s Effective Krone-Rate Index
Erik Haller Pedersen, Economics
As from 1 October 2004, a new set of weights is applied to the calculation of Danmarks Nationalbank’s effective krone-rate index. Two new countries, China and Hong Kong, are now included. The weighting of Germany has decreased significantly, even though Germany is still Denmark’s largest trading partner. There has been a small change in the method used to calculate the set of weights.

Turnover in the Foreign-Exchange and Derivatives Markets in April 2004
Peter Askjær Drejer and Vibeke Buur Hove, Statistics
Since 2001 turnover in the Danish and global foreign-exchange markets as well as the market for OTC derivatives has increased considerably. The rising turnover matches the tendency for smaller spreads and a general influx of liquidity. One half of all krone trading takes place in the global market.

Articles in the Monetary Review
4th Quarter 2002 – 3rd Quarter 2004

Press Releases

Tables and Graphs Section