In doing so, the Congress carefully balanced the need for public accountability with the strong public policy benefits that flow from maintaining an appropriate degree of independence for the central bank in the making and execution of monetary policy.
In connection with the FSAP a stress test was conducted to assess whether the Danish financial system is robust to cyclical changes. The basis for the stress test included Danmarks Nationalbank's macro model, MONA, and a stress test module that we have estimated. The worst-case scenario applied by the IMF involves a slowdown of the domestic economy, exacerbated by monetary-policy tightening by the ECB.