The Governing Council conducted an intensive discussion of the current monetary policy stance in which it was concluded that the balance of risks to price stability remains on an upward trend.
Against the background of high inflation, excessive budget deficits, permanent deficits on the current account of the balance of payments, frequent devaluations of the krone and high nominal interest rates, the Danish authorities in the early 1980s made a successful U-turn to a stability-oriented macroeconomic regime. The fixed-exchange-rate policy was, and still is, an important element in the macroeconomic framework in Denmark.