Will the current employment crisis produce lost generations with permanently lower labour market attachment? Taking an explicit cohort perspective and based on Danish data we do not find strong persistence in employment rates at the cohort level. Younger workers tend to be more exposed to...

Nominal interest rates fell to record-low levels globally in the decades prior to the pandemic. Five economies, Denmark, the euro area, Switzerland, Sweden and Japan, stand out by having adopted negative interest rate policies (NIRP). In this paper, we document that these economies have high...

Since early 2021, consumer price inflation has risen sharply across the advanced economies, including the US, the euro area and Denmark. We argue that the surge in inflation in the three economies in 2021-22 reflects multiple factors, including the Covid19 pandemic in 2020-21 and the Russian war...

We study the impact of the ECB's large scale asset purchase programme on selected euro area and neighbouring countries. The effects of the programme are assessed by conducting an event study as well as by estimating a structural VAR model using a shadow short rate as a measure of the monetary...

In this paper, we search for evidence of a reversal rate in monetary policy based on a sample of Danish banks. Our findings do not point towards a reversal in the pass-through of changes to the monetary policy rate. While the immediate passthrough to bank lending rates has been lower following...

Over the past 30 years, Denmark has had a savings surplus in the sense that gross savings have exceeded gross investments. This is equivalent to a current account surplus, and it has been particularly evident since the global financial crisis in 2008. The savings surplus has to a large extent...

This paper analyses the implications of real wage rigidities in a stochastic two-country general equilibrium model. It is shown how real wage rigidities in one country affect welfare in both countries. Assuming that the choice of whether or not to adopt flexible wages is in the hands of labour...