Economics
How Negative Rates and Millionaires Played a Role in Danish Vote
- Economist sees link between election result and negative rates
- Denmark has witnessed a sharp rise in inequality since 2012
Shoppers walk through the Kobmagergade pedestrianized shopping street in Copenhagen, Denmark.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
There may be a link between Denmark’s new left-wing government, a record spate of negative interest rates and the rise in the number of multi-millionaires in the country.
The chief economist at the Copenhagen office of Nordea, Helge Pedersen, says Denmark’s extreme monetary policy environment was highly effective in pumping up assets held by the wealthy. The development left many voters disgruntled, tipping the balance of power toward a left-leaning government.