Precautionary motive for holding foreign currency, like the demand for money, can be positively related to wealth and the cost of covering unplanned deficit, and negatively related to the return from alternative assets.
Under this heading, we started issuing so-called green government bonds last year. I will comment on each of these aspects in the final part of my presentation. Slide 12  Climate change can challenge price and financial stability. •  Heat stress or lower crop yields lead to chronically lower output abroad, with spill-over effects for Denmark.