The Danish fixed-exchange-rate Policy  It is important to emphasise that the Danish exchange-rate policy is a fixed-exchange-rate policy, and not a fixed, but adjustable, exchange rate. Taken literally, this can only be true with euro area membership. However, in a Danish policy context it means that all macroeconomic policies are conducted with a view to ensuring a fixed exchange rate.
There is no contingency plan if things go wrong. The two key conditions for success are a strong commitment from the authorities to abstain from creating “home made” shocks (which according to the Danish experience are far more important than exogenous external shocks) and an unconditional willingness to subordinate monetary policy to the exchange-rate strategy.