Furthermore, repeated devaluations in order to restore competitiveness only resulted in high and volatile inflation and high interest rates. In contrast, the German Bundesbank had good experience of maintaining a rather stable inflation by the standards of that time. Since Germany was Denmark's largest export market, it was decided to link the Krone to the D-mark.
I am convinced that once the modified version of the Taylor rule is in place, it will provide the much-needed conceptually robust, and technically rigorous, analytics content to monetary policy making with a view to pre-emptively , pro-actively and decisively addressing potential asset bubbles.