Danmarks Nationalbank introduced its annual report on financial stability in Denmark in 2000. The purpose of the analyses is to identify risks currently faced by the financial sector. As the stability in the financial sector depends on the customers' financial circumstances, and as the majority...

The paper develops a simple stochastic new open macroeconomic model in which pricesetting firms' choice between producer currency pricing and local currency pricing is endogenous. We show that, in equilibrium, firms will denominate their export price contracts in the currency of the country with...