Distribution of responsibilities
|There is a clear distribution of responsibilities between the Danish government and Danmarks Nationalbank in relation to economic policy.|
Danmarks Nationalbank is responsible for the element of economic policy called monetary policy, while the Danish government and the Parliament (Folketinget) are responsible for fiscal policy and economic policy in general.
Through its monetary policy, Danmarks Nationalbank ensures that the exchange-rate of the krone is stable vis-à-vis the euro. Monetary policy thus contributes to keeping inflation at bay.
Danmarks Nationalbank is independent of the government in relation to monetary policy. It is important that fiscal policy and economic policy in general also support the fixed-exchange-rate policy.
The fixed-exchange-rate policy has been pursued since 1982.