 Macroeconomic Policy and the External Constraint: The Danish ExperienceSøren Nielsen and
Jørgen Søndergaard
No 90-15, Discussion Papers from University of Copenhagen. Department of Economics Abstract: This paper considers the relation between the external balance and economic policy formation in the context of the Danish economy during the last three decades. The main lines of macroeconomic development, the structure of the economy and economic policy in this period are expounded, and the question of how Denmark arrived at its present foreign debt to GDP ratio of close to 40 persent is posed. Finally, the nature of the external constraint on the Danish economy is addressed. A tentative conclusion is that a significant part of Danish foreign debt could be a reflection of the structure of tax and expenditure policy and demographics; still, current account deficits may cause concern to the extent that they arise from e.g. tax distortions - or for intergenerational distributional reasons. Keywords: domestic monetary theory; balance of payments and adjustment mechanisms; private international lending; Denmark (search for similar items in EconPapers) Published in: George Alogoskoufis, Richard Portes, Lucas Papademos, (eds.), External Constraints on Macroeconomic Policy. Cambridge University Press, 1991, pp 342-371 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:9015 Access Statistics for this paper More papers in Discussion Papers from University of Copenhagen. Department of Economics Oester Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark. Contact information at EDIRC. |
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