Market liquidity and market making - the case of fixed income and low interest rates Market liquidity has received a lot of attention lately, especially in fixed-income markets. This paper studies the determinants of market liquidity in a theoretical model for market making with inventory costs,...

We take a closer look at the links between corporate capital structure and productivity, profitability and access to finance based on Danish industry-level and firm-level accounting data from the period 2000-2011. Our results indicate that the capital structure has no significant impact on the...

Flexibility in the labour market is important for macroeconomic stability. The Danish labour market has been highlighted as being flexible, which this study confirms using micro data from 1980 to the present. Unemployment insured workers are found to be less geographical job mobile than workers...

Unemployment insurance schemes include conditions on past employment history as part of the eligibility conditions. This aspect is often neglected in the literature which primarily focuses on benefit levels and benefit duration. In a search-matching framework we show that benefit duration and...

The short-term Danish interbank market before, during and after the financial crisis The paper studies the microstructure of the short-term uncollateralised Danish interbank market before, during and after the financial crisis. The financial crisis in 2008 was followed by a slowdown in trading...

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...