Today the macroeconomic fundamentals of the Danish economy are sound and fairly robust: Low inflation, surpluses on the current account as well as on the general government budget, and a relatively low level of unemployment. However, this has not always been the case!
Today's firm commitment to a fixed exchange rate in Denmark has its background in bad macroeconomic policies and, consequently, poor performance of the Danish economy in the 1970s and the beginning of the 1980s.