Recent theoretical models suggest that the costs governments face when defaulting on their domestic and external debt may differ considerably. This paper examines if this proposed cost difference is reflected in sovereign risk spreads across domestic and foreign markets. Specifically, I analyze...

The paper presents time series for Danish general government net lending in the period 1875-2003 and analyses the long-term term fiscal development in Denmark. Even though Denmark today has one of the largest public sectors in Europe, relatively speaking, the Danish general government's deficit...

This paper constructs annual trade-weighted nominal and real effective exchange rate indices for Denmark covering the period since the introduction of the krone as the Danish currency unit in 1875. Two real effective krone rate indices with respectively wholesale prices and consumer prices used...

The paper constructs financial-account stock data for Denmark 1875-2005 on an annual frequency and explores the historical monetary and financial trends and cycles on the basis of the new data set. The annual financial-account data constructed in the paper are based on a comprehensive range of...

The paper reviews the empirical evidence regarding long-run relative purchasing-powerparity (PPP) convergence in the case of Denmark using simple unit-root tests and cointegration tests on new historical time-series indices for the effective krone rate since 1875. The results based on a real...

The paper paints a broad picture of the interest-rate development in Denmark since 1875. Three different short-term interest-rate series (the official discount rate, private banks' average deposit rate, and the market rate of discount/money market rate) and two different long-term interest-rate...

Long-span time series on credit by institutional sectors and industries are not readily available in Denmark. The paper constructs annual time series for credit to Danish residents by sector and industry 1951-2005 and explores the trends and cycles in credit during the past five decades. There...

This paper offers a fact-oriented chronology of the Danish exchange-rate policy since the introduction of the krone as the Danish currency unit in 1875.

This paper shows that geographical investor heterogeneity strongly influences sovereign risk. While standard sovereign debt models mainly attribute the absence of sovereign defaults to foreign creditor retaliation, a new theoretical literature argues that domestic creditors also affect borrowing...

Long-span time series on credit by institutional sectors and industries are not readily available in Denmark. The paper constructs annual time series for credit to Danish residents by sector and industry 1951-2005 and explores the trends and cycles in credit during the past five decades. There...