During this restoration period unemployment had risen to 12 per cent by 1993, i.e. more than twice today’s level. Danish wage increases in 1993 were furthermore lower than among our trading partners. The relaxation of fiscal policy achieved in 1993 had an effect concurrently with a considerable stimulus to demand as a consequence of the extensive wave of mortgage conversions.
The strong decline in international interest rates in 1993 also had an impact on Denmark, and from mid-1993 to the beginning of 1995 mortgage-credit loans for approximately kr. 300 billion were converted.