Economic Memo

Published Download Title

Worker flows and reallocation in COVID-19 exposed sectors in the Danish economy

Past worker flows show that among the sectors hit hard by the COVID-19 epidemic, workers in "Transportation" accumulate relatively more human capital. In the event of large worker reallocation, this sector's productivity would be hit harder and need longer to recover due to the loss of firm and sector-specific knowledge and skills of the departing workers.


Liquidity Reserves of Danish Firms: implications during the COVID-19 epidemic

We analyse the distribution of internal liquidity reserves among Danish firms during normal times. The median firm has reserves covering about one month of "fixed capacity cost". About a third of firms have reserves close to zero. We show that cost and wage compensation schemes, as implemented in Denmark during the current coronavirus epidemic, substantially extend the duration of liquidity reserves for firms with some reserves. Firms with very low reserves have to rely on external sources of liquidity.


Do equity prices reflect the ultra-low interest rate environment?

Economic Memo is a new publication series from Danmarks Nationalbank. Please, update your News service settings if you want to receive a notification when the next Economic Memo is available. The first Economic Memo shows that the equity risk premium has doubled after the financial crisis. As a result, financing costs of corporations declined less than monetary policy rates. The memo looks into explanations behind the higher premium.

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