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Why Denmark should either abandon its peg to the euro or join the single currency

Codogno, Lorenzo and de Grauwe, Paul (2015) Why Denmark should either abandon its peg to the euro or join the single currency. LSE European Politics and Policy (EUROPP) Blog (12 Mar 2015). Blog Entry.

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Abstract

Following Switzerland’s announcement in January that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, Denmark has faced mounting speculation that it will follow suit and abandon its euro peg. Lorenzo Codogno and Paul De Grauwe write that there is a paradox in the approach of Denmark to the issue: the Danish central bank has made it clear that it will never change its parity with the euro, but if this is true then there is no reason for the country to avoid joining the single currency. They argue that while there are still instruments available to resist the immediate pressure from financial markets, ultimately the costs of any adjustment in policy will be lower if action is pursued now.

Item Type: Online resource (Blog Entry)
Official URL: http://blogs.lse.ac.uk/europpblog/
Additional Information: © 2015 The Author(s); Online
Divisions: LSE
Subjects: H Social Sciences > HB Economic Theory
J Political Science > JN Political institutions (Europe)
Date Deposited: 29 Mar 2017 11:34
Last Modified: 20 Feb 2019 16:03
URI: http://eprints.lse.ac.uk/id/eprint/71401

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