U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-25-2019, 11:32 PM
 
2,767 posts, read 1,130,482 times
Reputation: 2634

Advertisements

The Danish Krone is pegged to the Euro, but that means that the ECB indirectly determines the monetary policy of the country. Every negative or positive externality that results from actions by the ECB must be internalized by the Danish central bank in order to maintain a certain exchange rate. It seems like Denmark has effectively locked itself out of any discussion regarding the value of its own currency for no reason.

Why don't they just join the eurozone so they can have an actual say in the their monetary policy?
Reply With Quote Quick reply to this message

 
Old 06-26-2019, 07:27 AM
 
18,845 posts, read 13,587,446 times
Reputation: 14261
Maybe the Ecb won’t let them? Maybe they want to maintain the flexibility to drop the peg if they want to?
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 08:11 AM
 
26,075 posts, read 28,473,598 times
Reputation: 24783
Quote:
Originally Posted by Drewjdeg View Post
Why don't they just join the eurozone so they can have an actual say in the their monetary policy?
Probably because they're a small country and would feel like they wouldn't have a real say. Isn't that why the UK did Brexit? They're a larger country and many people obviously didn't feel like they had a say. The European Union can be quite dictatorial.

Naomi Wolf talks about this sort of thing here from 1:05 to 7:05. She talks about the European Union specifically at 5:00.


https://www.youtube.com/watch?v=Ldc0k8e6aDI&t=451s
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 08:38 AM
 
5,096 posts, read 2,743,062 times
Reputation: 9349
Probably for a similar reason why the UK still has the pound.
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 12:22 PM
 
Location: western East Roman Empire
6,598 posts, read 10,664,793 times
Reputation: 5755
Quote:
Originally Posted by Lowexpectations View Post
Maybe they want to maintain the flexibility to drop the peg if they want to?
Even more so, to leave the EU if they want to.

Notably, Sweden and Norway (non-EU) do not use the euro. [By the way, the Danes voted NO to the EU treaty back in 1992, I believe it was, but it was later forced through anyway.]

By a similar token, neither do Czech Republic, Hungary, and Poland.


Notice a pattern here?

The EU, and a especially the eurozone, is a Franco-German/Benelux alliance and its weaker satellites.

In that vein, worthy of note:

1) Finland is NOT a Scandinavian country and is more paranoid about Russia, same goes for the Baltic countries;
2) Same is true to a certain extent regarding Bulgaria and Romania, but they're mostly in for it for what they can get out of it;
3) Ireland is paranoid about UK;
4) PIGS and Cyprus would be swallowed up into the southern and eastern Mediterranean.


I would expect the Danes to try to remain on the sidelines for as long as they can and/or until the EU/eurozone thing can consolidate to the point of no return, which could take another 50-100 years, if ever.

Good Luck!
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 12:33 PM
 
2,730 posts, read 1,747,774 times
Reputation: 5962
National sovereignty?
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 01:00 PM
 
Location: Copenhagen, Denmark
10,511 posts, read 8,751,470 times
Reputation: 12192
Quote:
Originally Posted by Thatsright19 View Post
National sovereignty?
That's it.
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 01:22 PM
 
2,767 posts, read 1,130,482 times
Reputation: 2634
Quote:
Originally Posted by Thatsright19 View Post
National sovereignty?
That's basically an illusion insofar as their currency is pegged to the Euro.
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 01:24 PM
 
2,767 posts, read 1,130,482 times
Reputation: 2634
Quote:
Originally Posted by mysticaltyger View Post
Probably because they're a small country and would feel like they wouldn't have a real say. Isn't that why the UK did Brexit? They're a larger country and many people obviously didn't feel like they had a say. The European Union can be quite dictatorial.

Naomi Wolf talks about this sort of thing here from 1:05 to 7:05. She talks about the European Union specifically at 5:00.


https://www.youtube.com/watch?v=Ldc0k8e6aDI&t=451s
Sure, but they have zero control in the status-quo. If they really cared about distancing themselves from the EU, they wouldn't peg their currency. Yet, here we are decades later.
Reply With Quote Quick reply to this message
 
Old 06-26-2019, 03:14 PM
DKM
 
Location: Thousand Oaks, CA
2,816 posts, read 1,003,285 times
Reputation: 2844
2 good reasons to keep their current currency:

They can unpeg or readjust it should they need to.

They are holding out for a more fiscal union before taking the plunge.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top