The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Slightly longer answer: Denmark joined Bretton Woods, just like the rest of The WestTM. When Bretton Woods crashed, we tried to maintain a D-Mark peg, but had a decade of regular devaluations against it.
Of course devaluing and then attempting to defend the new exchange rate is just asking to be attacked. What we should have done was to float our currency. What we did instead was elect a right-wing economic hit man who enforced the D-Mark peg to the exclusion of all sensible macroeconomic concerns. Right on cue, this caused our productive economy to crater and the FIRE sector to blow a huge bubble all over the first half of the 1980s.
Somehow the 1980 decision to go for broke on the peg rather than abandon it has been anointed as the greatest act of wisdom in recent Danish economic history - rather than the gross act of irresponsible industrial sabotage it actually was.
Friends come and go. Enemies accumulate.
In the immortal words of the Bundesbank:
The Bundesbank with its commitment to price stability had refused to lower interest rates massively. The partner countries are forcibly reminded of their responsibility for their currencies; the process of convergence needed for monetary union is strengthened.
and I feel fine
She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
It will be interesting to see what happens the day it comes under serious attack. So far our oil revenues have made such attacks non-viable, but that state of affairs will not last beyond the present decade.
by Frank Schnittger - Feb 21 37 comments
by Cat - Feb 18 17 comments
by ATinNM - Feb 6 22 comments
by Oui - Feb 12 16 comments
by Oui - Jan 26 3 comments
by Oui - Feb 14 1 comment
by gmoke - Feb 13
by Frank Schnittger - Feb 5 10 comments
by Oui - Feb 23
by Frank Schnittger - Feb 2137 comments
by Cat - Feb 1817 comments
by Oui - Feb 177 comments
by Oui - Feb 141 comment
by gmoke - Feb 13
by Oui - Feb 1216 comments
by Oui - Feb 12
by Oui - Feb 86 comments
by Oui - Feb 71 comment
by ATinNM - Feb 622 comments
by Frank Schnittger - Feb 510 comments
by Oui - Feb 42 comments
by Frank Schnittger - Feb 254 comments
by Cat - Feb 18 comments
by Oui - Feb 11 comment
by Oui - Feb 129 comments
by Oui - Jan 302 comments
by Frank Schnittger - Jan 2936 comments
by Frank Schnittger - Jan 2811 comments