Liquidity risk revisited

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What has been the impact of the crisis on reserve management at the Danish central bank?

The Danish central bank intervened in autumn 2008 and this obviously had a direct effect on the level of reserves. There has been a considerable drain on reserves, as the central bank spent Dkr64 billion ($10.8 billion) on intervention in October. In addition we have seen a situation where the money market has been dysfunctional.

Was there anything new about the intervention?

The new aspects which surprised