Denmark sports Negative interest rates. How?

Posted by $ blarman 9 years, 8 months ago to Government
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There are two tricks involved. The first is that the Danish krone is pegged against the Euro even while not part of the EU. The second is that real estate prices have skyrocketed.

Can it last? Sure - until the EU crashes and takes Denmark with it...


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  • Posted by CircuitGuy 9 years, 8 months ago
    I don't know if it's related to their monetary policy, but things in Copenhagen just seems incredibly expensive compared to things on the other side of the Oresund Bridge. The Swedes say it's because the Danish economy is so strong. Prices in Copenhagen seem a little high if there were in Swedish Kronor, and then your realize it's Danish Korner, which are worth 25% more.

    That TV show "The Bridge" makes the Danes seems super-laid back compared to the Swedes, but I don't really detect that.

    I love Copenhagen and sort of dream of my family cramming into one of those expensive two-bedroom apartments on one of those little islands about two or three blocks in size. I'm amazed at how they're just connected by one car bridge and a couple of bike bridges. I don't know how they make it work, but I think it's awesome. I love how bike-friendly it is, even compared to Madison, which is supposed to be near #1 for the US.

    I couldn't stand living there though. The first thing I do when I get back is buy a $0.99 32 oz big gulp. :)
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  • Posted by CircuitGuy 9 years, 8 months ago
    I hope they get their monetary policy together. I am confused as to why rates around the world are so low compared to twenty years ago. I know it drives up real estate, but what doesn't it drive up the price of everything?
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