green capital market where green investments can find the right green projects. we find it important for us, as an issuer of government bonds, to be present in this market and help to set a standard. in addition, it has been important for us to issue a green bond based on the eu taxonomy, as we believe that a single european standard for what is green is a prerequisite for creating the necessary transparency. 1 / 2 bis central bankers'speeches accordingly, we find that we are able to offer a forward - looking framework by taking an explicit position on existing and future regulation regarding green bonds. at the same time, we believe that the explicit government commitment to green spending, which the bonds ensure, and not least the subsequent reporting on the climate effects of the spending, helps to support and create transparency about our green ambitions as a country. read more about danmarks nationalbank ’ s issuance of green government bonds here. the slideshow used in the presentation of the green government bonds can be found here. 2 / 2 bis central bankers'speeches

is generally sound, and writedowns are low. viewed in that perspective, danmarks nationalbank is currently of the opinion that the international turmoil may serve as a " useful " wake - up call for the danish banks. the necessary adaptations to the changing circumstances can be made in a timely manner without any serious costs to the large majority of the banks or to the economy as a whole. what is the cyclical impact of the turmoil? growth in the global economy has been unusually high in recent years. however, the turmoil in the financial markets has given rise to concern about the future development. growth has declined in the usa, although the crisis in the us mortgage market and the derived financial turmoil has not yet been fully reflected in the rest of the economy. so far, the upswing is set to continue in europe and asia, and the outlook is also positive for africa and latin america. oil prices have risen strongly in recent months and have put a damper on growth prospects while also adding to inflationary pressures. until now, the international organisations have reduced their growth forecasts only moderately – except in respect of the usa, where growth in 2008 is now predicted to be less than 2 per cent – but no recession is foreseen. clear concerns are expressed as to whether the uncertainty linked to the financial markets and the downturn in the housing market – not only in the usa – will spread to the rest of the economy, thereby further curbing growth in the usa and also affecting europe. in a danish perspective, the outlook for the export markets remains positive, but with a downward trend. denmark is still in a strong boom with a hot labour market and capacity pressures on large parts of the economy. the rate of unemployment remains surprisingly low. the tight labour market means that the capacity pressure will remain high, although growth in demand is expected to moderate somewhat. this pressure has led to a surge in imports and in recent quarters also to a higher rate of wage increase and higher domestic price pressure, reflecting the fact that wages and prices normally react to cyclical developments with a substantial time lag. a potential setback may therefore be prolonged if the cost level at the outset is too high compared with abroad. the high temperature in the economy at the moment entails a major risk that this will be the case. on account of the fixed - exchange - rate policy, interest rates in denmark are aligned with those of the euro area, which is not as far into the economic cycle as denmark is.