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

The Money and Foreign-Exchange Markets during the Crisis - Part 1

The money market, including the market for interbank loans, played a central role during the financial crisis. In the autumn of 2008, the money markets froze and the Danish krone came under pressure as international investors withdrew from minor currencies. This article provides a non-technical summary of analyses in Part 2 of this Monetary Review, exploring why the Danish money and foreignexchange markets were hit during the crisis, the impacts and Danmarks Nationalbank's measures in this respect. Danmarks Nationalbank established a number of initiatives to support up the banks' liquidity positions in kroner, euro and dollars. Empirical analyses show that, in general, the banks' liquidity improved due to these measures. The krone remained stable during the crisis. Still, the crisis demonstrated that in times of crisis, a large foreign-exchange reserve is needed, and, in response, Danmarks Nationalbank has more than doubled its foreign-exchange reserve relative to the pre-2008 crisis levels.