Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
The pressure on the economy should be eased
Inflation is at 40-year high, and central banks across the world are currently tightening monetary policy. Together, these factors are dampening growth prospects for the Danish and international economies for the coming years. However, the combination of high inflation and a very tight Danish labour market carries the risk of self-reinforcing wage and price increases. Therefore, fiscal policy should help reduce the demand pressure as quickly as possible.