Denmark should avoid fiscal stimulus to preserve balanced recovery – central bank
Government should be ready to tighten public spending to prevent the economy from overheating
The protracted expansion of the Danish economy will remain balanced as long as public spending does not further stimulate it, the National Bank of Denmark said today (September 12).
The government should be ready to tighten fiscal policy if the economy starts to show signals it is overheating, the central bank says in a comprehensive analysis of the economy. “Given the outlook for continued low interest rates, it falls heavily on fiscal and structural policies to ensure a continually balanced
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