Economics at your fingertips  


Thomas Barnebeck Andersen and Nikolaj Malchow-Møller ()
Additional contact information
Thomas Barnebeck Andersen: Department of Business and Economics, University of Southern Denmark, Campusvej 55 Dk-5230 Odense M, Denmark
Nikolaj Malchow-Møller: Department of Business and Economics, University of Southern Denmark, Campusvej 55 Dk-5230 Odense M, Denmark

The Singapore Economic Review (SER), 2017, vol. 62, issue 05, 1179-1194

Abstract: This paper compares Denmark's growth performance to that of the other 18 non-Eurozone OECD economies during 2008–2013. Denmark is the only country with a fixed exchange-rate regime; all the other 18 countries have flexible exchange rates, mostly as part of an inflation-targeting (IT) framework. At the same time, Denmark is the worst growth performer of all. Our analysis indicates that the lack of monetary policy independence is central to understanding the meager Danish performance. Monetary easing during 2008–2009 is an important predictor of economic growth during 2008–2013, and Denmark, having outsourced monetary policy to the ECB, did not pursue monetary easing as aggressively as most other countries. In fact, the Danish Central Bank was forced to raise its policy interest rate in 2008Q4 in order to defend the euro-peg. Overall, the Danish experience serves as a reminder that fixed exchange rates can be quite taxing on economic growth in the aftermath of a huge negative shock.

Keywords: Exchange-rate regimes; monetary policy; financial crisis; economic growth (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Series data maintained by Tai Tone Lim ().

Page updated 2018-02-09
Handle: RePEc:wsi:serxxx:v:62:y:2017:i:05:n:s0217590815501088