I have also made it clear to the financial institutions that use of Danmarks Nationalbank’s lending facilities is not an acceptable solution for managing refinancing risk. I take this opportunity to repeat that message. Securities should only be pledged as collateral to Danmarks Nationalbank in connection with ordinary monetary-policy operations.
The Reserve Bank of New Zealand was a pioneer in the field of inflation targeting in 1990; 20 years later, the majority of advanced and large emerging economies had a similar framework in place. This not only allowed for lower average inflation around the world, but also for lower dispersion of inflation rates across countries.