The Danish case The Danish government’s first reaction to the financial sector woes in 2008 was in many ways similar to those of other European states: ample recourse was made to bailouts, loans, guarantees etc. However, at the peak of the banking crisis in 2010, Denmark chose to take a tougher stance than its European counterparts.
2  See Rajan Raghuram and Douglas Diamond (2001) “Liquidity risk, liquidity creation and financial fragility: a theory of banking” Journal of Political Economy, Vol 109, no 2 (April 2001) and also by the same authors “Money in a theory of banking” The American economic Review, March 2006, and “Liquidity shortages and banking crises", The Journal of Finance, Vol LX, No. 2, April 2005.