Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.


The Danish Natural Real Rate of Interest and Secular Stagnation, Working Paper no 94, 2015

Working paper: This paper discusses the natural real rate, why and how it reflects the stance of monetary policy, and what can happen if it turns negative; make monetary policy ineffective, which in a situation with a negative output gap can lead to a long period of low growth - secular stagnation. Denmark as a fixed exchange rate regime vís-a-vís the euro and consequently has tied its policy rate to the policy rate in the euro zone. But it can still be interesting to analyse the stance of monetary policy and use it as input in policy recommendations for fiscal policy and other economic policies. Using this as motivation, the natural real rate is estimated using Danish data...