I should note that these current account balances of necessity reflect realized patterns of investment and saving rather than changes in the rates of investment and saving desired from an ex ante perspective.
The surge went hand in hand with an even stronger rise in housing wealth, which enhanced homeowners’ opportunities to raise loans against the home as collateral. Previous analyses have shown that Danish households would still be able to service their debts, even during an economic downturn, and the high gross debts do not pose a serious threat to financial stability.