Contents

Recent Economic and Monetary Trends

Money Growth, Inflation and the Business Cycle
Lars Risbjerg, Economics
Money growth has recently been relatively strong both in Denmark and abroad. The article investigates whether money growth in Denmark is higher than the current economic conditions and interest rates would normally warrant. Furthermore, the correlation between money growth and inflation in the short and long term is examined, as well as the correlation between money, credit and housing prices over the business cycle.

Legal Tender
Louise Buchter and Kirsten Gürtler, Legal Affairs
This article describes the concept of legal tender and analyses its legal and practical implications, including situations where a payment recipient may refuse to accept banknotes and coins by agreement between the parties or in accordance with special legal provisions.

Status of the Faroese Economy, Mid-2006
Christian Ølgaard, Economics
In the past year, the Faroese economy has picked up, supported by rising prices for fish and an upward trend for housing prices. Unemployment has fallen, and the net emigration trend seen in recent years has ceased. In spite of high growth in imports, it is estimated that the current account continued to show a surplus in 2005. Government finances are expected to be close to balance in 2006. The favourable economic development is set to continue in the coming year.

Housing Stock and Housing Tax in a Regional Perspective
Jan Overgaard Olesen and Erik Haller Pedersen, Economics
On the basis of special data extracts from Statistics Denmark of with details of regional living space and revenue from taxation of real property this article describes the Danish housing stock and taxation of real property, focusing on regional aspects.

Private Equity Funds, Capital Flows and the Foreign-Exchange Market
Peter Jayaswal, Accounting, Mette Kornvig, Statistics and Katrine Skjærbæk, Market Operations
Calculations show that foreign private equity funds have invested around kr. 120 billion in acquisition of Danish companies from 2005 up to and including the 1st quarter of 2006. This article illustrates how such acquisitions affect Denmark's external capital flows and the foreign-exchange market for Danish kroner.

Seasonally Adjusted Financial Statistics
Mette Kramer Pedersen, Statistics
As from the autumn of 2006 Danmarks Nationalbank will publish seasonally adjusted financial statistics. Financial statistics are affected by e.g. the Christmas trade, the summer holiday period, quarterly mortgage payments and other institutional factors. Seasonally adjusted statistics take these factors into account, which facilitates analysis on a month-on-month basis.

Press Releases

Tables and Graphs Section

Vol. XLV, No. 3