It is probably more important that by entering the ERM II agreement in 1998 the Danish government strengthened its commitment to pursue an economic policy in accordance with the requirements set by the fixed-exchange-rate policy. A stability oriented macroeconomic framework conducive to growth and employment can undoubtedly be achieved in many different ways.
In the case of Denmark the fixed-exchange-rate policy and ERM (I and II) membership have been instrumental to the establishment of such a framework. There are many country-specific circumstances that make life either easy or difficult under a fixed-exchange-rate regime. However, there are two fairly general lessons to be learnt. Firstly, monetary policy must be unconditionally subordinated to the exchange rate.