The VIX indicator decreased to 24 while the CDS also fell to 78 which then encouraged the strengthening of many Asian currencies against the US dollar. The reduction in global uncertainty is expected to stimulate foreign capital inflows and further appreciation of the exchange rates in developing countries, including Indonesia.
When will we see renewed progress? Most forecasters believe that the global economy will turn sometime during 2009. In Denmark's case we may have to wait until 2010. But let me emphasise that such estimates are subject to exceptionally high uncertainty.