The Danish Krone is not just the main currency of Denmark. It is also the main currency of Greenland and the Faroe islands. The Krone is issued by the central bank of Denmark (Danmarks Nationalbank). Now, the central bank of Denmark is rather unique among central banks because, rather than... [Read More]

In today’s globalized world, it is highly likely that your car was made in Japan, your software comes from the U.S., your pension fund has invested via London, and the rest of you stuff…. probably comes from China. To understand the effects of globalization, using the standard measurement, gross domestic... [Read More]

How are exchange rates determined? This is one of the most fundamental and complex questions in economics. And as of today, it has NOT yet been fully solved. That being said, economists have a pretty good understanding of the basic variables that determine the exchange rate: inflation and interest rates.... [Read More]

Let me tell you something pretty crazy…. I have one bank account in Estonia with a British bank and another South Africa. I’ve also invested in some stocks in the Netherlands and some bonds in the United States. But, it is 2021, and I’m guessing that, actually, this is not... [Read More]

In theory, economists like to look at data, at the facts if you will. Well, one fact that they have been puzzling over for quite some time now is why asset prices, such as house prices and bank credit creation tend to move up together.. Until, of course they don’t... [Read More]