In this paper, we introduce a novel tool for housing market analysis developed on the basis of online listings data from the largest real estate listing site in Denmark. The tool uses a combination of machine learning techniques to provide a datadriven segmentation of the housing market into...

This paper develops a Bayesian VAR model to identify three structural shocks driving the European gas market: demand, supply and inventory shocks. We document how gas price fluctuations have a heterogeneous pass-through to euro area prices depending on the underlying shock driving them. The...

We investigate the impact of expectations about future climate policy on investment decisions of fossil fuel firms. Our empirical analysis reveals that firms with greater exposure to climate change significantly increased their investment in response to the Paris Agreement, in contrast to firms...

The paper analyses the effectiveness of fiscal tools at the zero lower bound (ZLB). A non-linear New Keynesian DSGE model with occasionally binding constraints on monetary policy and borrowing is applied. When the ZLB binds in a liquidity trap, government spending becomes more effective in...

This memo discusses effects of COVID-19 on interest rates through the lens of global movements in the natural real interest rate. While government spending and public debt issuance are likely to cause a rise in r*, r* may decline due to precautionary behaviour. The net effect is uncertain.

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...

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...

We study the empirical effects of fiscal policy in Denmark since the adoption of a fixed exchange rate policy in 1982. We demonstrate that fiscal stimulus has a rather large impact on economic activity in the very short run, with a government spending multiplier of 1.3 on impact in our preferred...