2  BIS Review 80/2007  rate options, and their actions helped restore liquidity to the markets and reduced the cost of hedging. The growth of hedge funds has also contributed to a broader dispersion of risks in the financial system, which thus far seems to have made the financial system somewhat less volatile.
But it is difficult to quantify this effect, which is hardly likely to be felt in the short term. Since the introduction of the euro in 1999, Denmark has performed well outside the euro area. This is due to our stability-oriented economic policy with focus on medium-term objectives and reforms to improve the structure of our society, not least the labour market.