The lesson is: do not  BIS Review 80/2005  1  spend the surplus when the economy is good – particularly if there is the slightest risk that competitiveness will suffer. The Danish economy has developed favourably in recent years. This is naturally very satisfactory.
Unemployment has declined and is now at a low level, private consumption is increasing by leaps and bounds, and yet we have a current-account surplus and cash is flowing into the government coffers. It is almost too good to be true – and there is indeed reason to exert some caution. Demand is still strong – and perhaps a little too strong.