Economics and Monetary Policy

In Economics and Monetary Policy, we work to ensure stable prices by contributing to monetary policy decisions and providing recommendations for other economic policies. In addition, we prepare Danmarks Nationalbank’s participation in international economic and monetary cooperation and conduct research into current economic issues of national and international relevance.

Examples of specific tasks performed by Economics and Monetary Policy:

  • We analyse the economic political development in Denmark and contribute to the formulation of Danmarks Nationalbank’s recommendations for fiscal and structural policy in Denmark.

  • We oversee and analyse the development in key interest rates, credit granting, capital movements, exchange rate policy and financial markets more generally and contribute to the basis for monetary policy decisions, including through the publication ‘Monetary and financial trends’.

  • We prepare projections for the economic development in Denmark and have the main responsibility for the publication ‘Outlook for the Danish economy’.

  • We oversee and analyse the development in the Danish economy and the international economy.

  • We coordinate Danmarks Nationalbank’s international collaborations and participate in international working groups and networks.

  • We develop economic models and tools for analysis of the economy and support Danmarks Nationalbank’s policy decisions.

Assistant Governor and Head of Department Thomas Harr answers three questions about the work in Economics and Monetary Policy:

How do you contribute to Danmarks Nationalbank’s work to ensure a robust economy?

“One of Danmarks Nationalbank’s three main objectives is to contribute to ensuring stable prices and thus low inflation, and our department especially contributes to meeting this objective. Denmark’s monetary policy is based on maintaining a fixed exchange rate against the euro. By analysing Danish monetary and currency conditions, we contribute to the basis for monetary policy decisions.

In addition, we analyse and oversee the Danish economy and the international economy and make projections for the Danish economy to examine what the economic situation is right now and where the economy is heading. In this connection, we publish the biannual publications ‘Outlook for the Danish economy’ and ‘Monetary and financial trends’. These publications contain fiscal policy recommendations that directly aim to ensure a stable and robust economy in Denmark.”

What makes your area particularly exciting?

“Through our collaboration with international organisations, we gain in-depth insight into what is happening in the global economy. At the same time, our in-depth analyses and research contribute to extensive knowledge of and insight into macroeconomic dynamics and trends. These analytical tasks provide ample opportunity for immersion in core socio-economic areas. We especial rely on our highly expert knowledge when we make projections for forecasts for the Danish economy and make fiscal policy recommendations.

We are motivated by cooperation and have great team spirit. For example, the publications ‘Monetary and financial trends’ and ‘Outlook for the Danish economy’ are prepared as part of a large team effort internally in our department and in collaboration with Danmarks Nationalbank’s other departments.”

What opportunities and challenges are there in your area?

“Our department offers good opportunities for trying your hand at different work areas. We are not only interested in the Danish economy, we also keep a close eye on global developments. Our department is the secretariat for the bank’s relations with several international organisations. Our experience is that it creates good opportunities for building up a large professional network domestically and abroad. Our many relations to the outside world also mean that there is ample opportunity for being posted to, for example, the ECB, the EU and the IMF for an extended period.

We immerse ourselves in several different economic topics, including financial conditions, the housing market, the labour market and households, from analytical and research perspectives. This provides ample opportunity for immersion through analysis of figures using the latest econometric techniques and economic models. In addition to the analysis work, there are also great opportunities for working with communication, as we prepare many of the bank’s communications.

The economy is constantly in flux, and we are continuously facing exciting challenges. This means that we stay sharp and up-to-date on the latest methods and knowledge at all times, so that we are always able to provide the best possible fiscal policy recommendations, helping us to ensure a robust and stable Danish economy.”

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