Denmark promises to match the ECB’s money printing craze
First the normally sane Swiss promise to match the European Central Bank’s money printing mania. Now the Danes’ have succumbed to the same insane fever. These central bankers harbor the fallacious notion that they can “protect” their currency by debasing it. Yes, if the ECB debases the euro, Danish export goods will become more expensive in euro denominate terms. But this is only temporary; the Krone/Euro exchange rate will adjust to reflect the relative purchasing power of each currency. But all the central banks of the world are ruled by Keynesian economists, who see money printing as the cure for all ills. If you believe this, then printing more local currency to match that of your neighbor makes sense.
Read my articles Currency War Means Currency Suicide and Value in Devaluation? that debunk this theory.