THE ECONOMIC SITUATION OF DENMARK

Andreas Larsen & Sebastain Schwensen

Studenteropgave: Semesterprojekt

Abstrakt

This paper provides a critical analysis of the development of the Danish economy in the aftermath of the ’Global Financial Crisis’ of 2008. We conduct the analysis of our empirical data through triangulation to examine both the phenomena and the cause of change in the phenomena. The theories employed in the project summaries to: ‘The General Theory of Employment, Interest and Money’, ‘The Permanent Income Hypothesis’, ‘The Financial Instability Hypothesis’, and ‘The Phillip’s Curve’. The theories employed for the analysis are selected on their ability to elaborately depict the observed phenomena with critical reflections towards considerations of reliability and validity. The vast majority of our analysis, have been conducted on the basis of statistics gathered from ‘Danmarks Statistik’, ‘Trading Economics’, and ‘OECD’. Our data has seeking to illuminate of the agents operation and behaviourisms within the market and how that has affected the economic development in Denmark. The paper finds that business could be likely to obtain large amount of leverage in order to expand in a future economic upturn, hence creating Ponzi schemes, which multiplied by the low interest rate. Furthermore, the paper examines the debt level of the Danes, but I does not find a conclusive answer to rather it is an offsetting factor, but I does suggest that I could become one and hence macro prudential supervision should be a priority. Finally, the paper find that the ‘flexicurity’ have had a large impact on government budget, while it has been supporting both the demand and supply side of the economy.

UddannelserBasis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis
SprogEngelsk
Udgivelsesdato21 dec. 2015
VejledereJohannes Kabderian Dreyer

Emneord

  • Economics
  • Debt
  • Ponzi
  • Finance
  • Flexicurity
  • Macroprudential