Other publications may include books, quarterly reviews, annual reports and economic bulletins from the ECB, PhD theses and Danmarks Nationalbank’s policies.

Financial stability and financial risks

Capital Flows and the Exchange Rate of the Krone

This article considers the short-term relationship between capital flows to and from Denmark and the development in the krone vis-à-vis the euro in the period 1999-2004. A significant relationship is found between weekly changes in the exchange rate and capital flows related to portfolio investments. In addition, various breakdowns of portfolio investments are considered, i.e. equities/bonds, the insurance and pension sector/other sectors and the euro area/the rest of the world.