The upswing has primarily been reflected in private consumption, but in addition unemployment has been falling slightly since the turn of the year. Naturally, the final impact on unemployment is difficult to predict since unemployment typically reacts with a considerable and varying lag. Unlike most other Western European countries, Denmark has a relatively low unemployment rate, and a strong upswing could lead to overheating.
A relevant issue in this context is the efficacy and coverage of deposit insurance. What should deposit insurance cover? How are small deposits to be defined? Apart from small deposits, should we, in a crisis situation like this, consider extending guarantees to the money markets and mutual funds? 6.