Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Declining but still high inflation
The significant tightening of monetary policy is helping to dampen inflation and take the pressure off the Danish economy. However, higher wage in-creases will sustain inflation in the coming years. Therefore, there is a need for a tight economic policy that does not add to inflation, and it is important that fiscal policy does not counter work monetary policy in bringing the inflation down. A tightening of fiscal policy may become relevant if the risk of a Danish wage-price spiral rises further. (This is an extract. The full English version will be available as soon as possible.)