In the early 1980s, a radical change in policies took place after a shift in government. In relation to a change of government in September 1982 the incoming government declared that devaluation would no longer be considered as an economic-policy instrument. This was subsequently followed by a significant tightening of the fiscal policy and an abolition of the automatic cost-of-living adjustment of wages.
The promise to pursue a firm fixed-exchange-rate policy was soon put to a serious test when Sweden – one of Denmark's largest trading partners – devalued its currency by 16 per cent one month later. Denmark did not devalue. This and the other tightening measures meant that the credibility of Denmark's fixed-exchange-rate policy was soon enhanced.