upcarta
  • Sign In
  • Sign Up
  • Explore
  • Search

Mortgage Credit: Denmark’s Financial Capacity Building Regime

  • Article
  • Nov 14, 2018
  • #PoliticalEconomy #RealEstate
James Wood
@thinkwoodist
(Author)
www.tandfonline.com
Read on www.tandfonline.com
1 Recommender
1 Mention
The integration of small states into the international financial system has constrained their ability to enact the traditional macroeconomic tools of fiscal and monetary policy. As... Show More

The integration of small states into the international financial system has constrained their ability to enact the traditional macroeconomic tools of fiscal and monetary policy. As systems of mortgage credit are tightly integrated into global capital markets and influence flows of capital between states, this paper uses Denmark as a case study to explore whether domestic mortgage sector reforms have been used to build financial capacity to compensate for the loss of economic policy autonomy. The results of this analysis suggest that the Danish government has actively used mortgage credit to meet three specific macroeconomic objectives since the 1980s: (1) mortgage credit was restricted in the 1980s to resolve Denmark's persistent balance of payments problem; (2) liberalisations of mortgage credit in the 1990s and 2000s allowed the Danish government to stimulate the economy via privatised/house-price Keynesianism and reduce their sovereign debt burden; and (3) mortgage credit has been used as a form of privatised monetary policy, allowing Denmark to break-free from the ‘iron-cage’ of the Mundell-Fleming trilemma. It is in these specific ways that the Danish government has used mortgage reforms to achieve macroeconomic policy autonomy and navigate economic challenges whilst adhering to the constraints of the international financial system.

Show Less
Recommend
Post
Save
Complete
Collect
Mentions
See All
Rosie Collington @RosieCollingto · Jan 23, 2022
  • Post
  • From Twitter
For further reading, check out: @LenSeabrooke [link] @jryancollins [link] @thinkwoodist [link] this interesting PhD thesis exploring ethnicity & class exclusion in Danish housing coops
  • upcarta ©2025
  • Home
  • About
  • Terms
  • Privacy
  • Cookies
  • @upcarta