Economy of the Faroe Islands
The economy of the Faroe Islands was the 166th largest in the world in 2014, having a nominal gross domestic product of $2.613 billion per annum. High dependence on fishing means the economy remains extremely vulnerable, the Faroese hope to broaden their economic base by building new fish-processing plants. Petroleum found close to the Faroese area gives hope for deposits in the immediate area, important are the annual subsidy from Denmark, which amounts to about 3% of the GDP. This leaves a largely middle-aged and elderly population that may lack the skills, since 2000, new information technology and business projects have been fostered in the Faroe Islands to attract new investment. The result from these projects is not yet known but is hoped to bring a market economy to the Faroe Islands. In 2014 the Faroe Islands had a surplus of 401 million DKK. The Faroe Islands mainly imported from Denmark and Germany, the countrys top export destinations were Russia, the United Kingdom, the United States, and Germany.
European Union countries contributed 62. 7% of Faroese imports, while the exports of the Faroes Islands were almost equally distributed between European Union and non-European Union coutries, the vast majority of Faroese exports, almost 95%, consists of fishery products. Russian countersanctions on food imports from Norway and the European Union, in 2014217,547 tonnes of oil products were consumed in the Faroe Islands. The islands have 6 hydroelectric plants,4 diesel plants and several power plants with a capacity factor above 40%. In 2014, a 12MW wind farm for DKK180 million became operational near Torshavn and it decreases oil consumption by 8,000 ton per year. A2. 3MW700 kWh lithium-ion battery became operational in 2016, planners consider converting the existing hydropower to pumped-storage hydroelectricity. Tidal power and Thermal energy storage solutions are considered, the islands have a goal of 100% green electricity production by 2030. Fossil fuel,49. 2% hydro,39. 5% wind,11. 3%% nuclear, some islands are not connected to the other islands, and must maintain their own electric system
The krone is the official currency of Denmark and the Faroe Islands, introduced on 1 January 1875. Both the ISO code DKK and currency sign kr. are in use, the former precedes the value. The currency is referred to as the Danish crown in English. Historically, krone coins have been minted in Denmark since the 17th century, one krone is subdivided into 100 øre, the name øre possibly deriving from Latin aureus meaning gold coin. Altogether there are eleven denominations of the krone, with the smallest being the 50 øre coin, formerly there were more øre coins, but those were discontinued due to inflation. The krone is pegged to the euro via the ERM II, the oldest known Danish coin is a penny struck AD 825–840, but the earliest systematic minting produced the so-called korsmønter or cross coins minted by Harald Bluetooth in the late 10th century. Organised minting in Denmark was introduced on a larger scale by Canute the Great in the 1020s, for almost 1,000 years, Danish kings – with a few exceptions – have issued coins with their name, monogram and/or portrait.
Taxes were sometimes imposed via the coinage, e. g. by the substitution of coins handed in by new coins handed out with a lower silver content. Danish coinage was based on the Carolingian silver standard. Periodically, the value of the minted coins was reduced. This was mainly done to generate income for the monarch and/or the state, as a result of the debasement, the public started to lose trust in the respective coins. Danish currency was overhauled several times in attempts to restore public trust in the coins, in 1619 a new currency was introduced in Denmark, the krone. One krone had the value of 1 1/2 Danish Rigsdaler Species accounting for 96 Kroneskillinger, for 144 common Skillings, until the late 18th century, the krone was a denomination equal to 8 mark, a subunit of the Danish rigsdaler. A new krone was introduced as the currency of Denmark in January 1875 and it replaced the rigsdaler at a rate of 2 kroner =1 rigsdaler. This placed the krone on the standard at a rate of 2480 kroner =1 kilogram fine gold.
The latter part of the 18th century and much of the 19th century saw expanding economic activity, banknotes were increasingly used instead of coins. The introduction of the new krone was a result of the Scandinavian Monetary Union, the parties to the union were the three Scandinavian countries, where the name was krone in Denmark and Norway and krona in Sweden, a word which in all three languages literally means crown. The three currencies were on the standard, with the krone/krona defined as 1⁄2480 of a kilogram of pure gold
Slotsholmen is an island in the harbour of Copenhagen and part of Copenhagen Inner City. The island is dominated by the vast Christiansborg Palace which houses the Danish Parliament, the Supreme Court of Denmark, the Prime Ministers Office, the site used to consist of several small natural islands in the sound between the islands of Zealand and Amager. On the largest of these, Bishop Absalon of Roskilde constructed a castle in 1167. In 1250 the castle was extended with two towers to get the appearance that is now depicted on Copenhagens Coat of Arms. The castle was conquered by the Hanseatic League 1368 and pulled down the year as part of peace terms. Shortly after Copenhagen Castle was built on the site and it became the residence for the Danish king in 1443. However, the took place in a rather haphazard way and continued during the reign of the following kings. Probably during the reign of Christian III a building was constructed on the quay of the canal in front of the castle to house the Chancellery.
During the reign of Christian III and Frederick II an arsenal was constructed by the south of the castle. Under King Christian IV Slotsholmen saw considerable development, especially in the part of the island. Here a new harbour was established, surrounded on one side by an Arsenal. Other new buildings constructed were the Stock Exchange and the Brewhouse, all four of these historic buildings are still there today. By the time of the introduction of the monarchy in 1660. During the reign of King Frederick III, further lack of space in the led to the construction in 1665-1673 of an additional building between the Supply Depot and the Arsenal. This building, still visible today, was to house the Cabinet of curiosities of the king, founded about 1650, during the reign of King Frederick IV, a magnificent administration building was constructed in 1716-21 next to the palace adjacent to the Supply Depot. This new building was to house the chancelleries, thus replacing the previous chancellery building situated by the canal, the new chancellery building was connected to the castle by an arched passageway, thus allowing the king to stay in close contact with his government.
The Chancellery Building has functioned as the heart of the administration for almost 300 years. Several renovations were made, most notably by Frederick IV in 1721-29 and this rebuilding thoroughly changed the irregular appearance of the castle to a more regular shape
Bank for International Settlements
The BIS carries out its work through its meetings programmes and through the Basel Process – hosting international groups pursuing global financial stability and facilitating their interaction. It provides banking services, but only to central banks and it is based in Basel, with representative offices in Hong Kong and Mexico City. The BIS was established in 1930 by an agreement between Germany, France, the United Kingdom, Japan, the United States. It opened its doors in Basel, Switzerland on 17 May 1930, the need to establish a dedicated institution for this purpose was suggested in 1929 by the Young Committee, and was agreed to in August of that year at a conference at The Hague. A charter for the bank was drafted at the International Bankers Conference at Baden-Baden in November, according to the charter, shares in the bank could be held by individuals and non-governmental entities. The BIS was constituted as having corporate existence in Switzerland on the basis of an agreement with Switzerland acting as headquarters state for the bank and it enjoyed certain immunities in the contracting states.
The BIS’s original task of facilitating World War I reparation payments quickly became obsolete, reparation payments were first suspended and abolished altogether. Instead, the BIS focused on its second statutory task, i. e. fostering the cooperation between its member central banks and it acted as a meeting forum for central banks and provided banking facilities to them. For instance, in the late 1930s, the BIS was instrumental in helping continental European central banks shipping out part of their reserves to London. At the same time, the BIS fell under the spell of the appeasement illusion, however, as the war dragged on evidence mounted that the BIS conducted operations that were helpful to the Germans. Also, throughout the war, the BIS accepted gold from the German Reichsbank in payment for prewar obligations linked to the Young Plan and this in spite of repeated Allied warnings not to accept gold or other assets from Nazi Germany. It transpired that much of gold had been looted by the Germans from the central banks in occupied territories.
Some of this remelted gold included gold rings and other items from labor, operations conducted by the BIS were viewed with increasing suspicion from London and Washington. H. The 1944 Bretton Woods Conference recommended the liquidation of the Bank for International Settlements at the earliest possible moment and this resulted in the BIS being the subject of a disagreement between the U. S. and British delegations. The liquidation of the bank was supported by other European delegates, as well as the United States, but opposed by John Maynard Keynes, head of the British delegation. Fearing that the BIS would be dissolved, Keynes went to Morgenthau hoping to prevent the dissolution, or have it postponed, the liquidation of the bank was never actually undertaken. In April 1945, the new U. S. president Harry S. Truman and the British government suspended the dissolution, after the Second World War, the BIS retained an outspoken European focus. It acted as Agent for the European Payments Union, an intra-European clearing arrangement designed to help the European countries in restoring currency convertibility and free, multilateral trade
Copenhagen, Danish, København, Hafnia) is the capital and most populous city of Denmark. Copenhagen has an population of 1,280,371. The Copenhagen metropolitan area has just over 2 million inhabitants, the city is situated on the eastern coast of the island of Zealand, another small portion of the city is located on Amager, and is separated from Malmö, Sweden, by the strait of Øresund. The Øresund Bridge connects the two cities by rail and road, originally a Viking fishing village founded in the 10th century, Copenhagen became the capital of Denmark in the early 15th century. Beginning in the 17th century it consolidated its position as a centre of power with its institutions, defences. After suffering from the effects of plague and fire in the 18th century and this included construction of the prestigious district of Frederiksstaden and founding of such cultural institutions as the Royal Theatre and the Royal Academy of Fine Arts. Later, following the Second World War, the Finger Plan fostered the development of housing, since the turn of the 21st century, Copenhagen has seen strong urban and cultural development, facilitated by investment in its institutions and infrastructure.
The city is the cultural and governmental centre of Denmark, Copenhagens economy has seen rapid developments in the service sector, especially through initiatives in information technology and clean technology. Since the completion of the Øresund Bridge, Copenhagen has become integrated with the Swedish province of Scania and its largest city, Malmö. With a number of connecting the various districts, the cityscape is characterized by parks, promenades. Copenhagen is home to the University of Copenhagen, the Technical University of Denmark, the University of Copenhagen, founded in 1479, is the oldest university in Denmark. Copenhagen is home to the FC København and Brøndby football clubs, the annual Copenhagen Marathon was established in 1980. Copenhagen is one of the most bicycle-friendly cities in the world, the Copenhagen Metro serves central Copenhagen while the Copenhagen S-train network connects central Copenhagen to its outlying boroughs. Serving roughly 2 million passengers a month, Copenhagen Airport, Kastrup, is the largest airport in the Nordic countries, the name of the city reflects its origin as a harbour and a place of commerce.
The original designation, from which the contemporary Danish name derives, was Køpmannæhafn, meaning merchants harbour, the literal English translation would be Chapmans haven. The English name for the city was adapted from its Low German name, the abbreviations Kbh. or Kbhvn are often used in Danish for København, and kbh. for københavnsk. The chemical element hafnium is named for Copenhagen, where it was discovered, the bacterium Hafnia is named after Copenhagen, Vagn Møller of the State Serum Institute in Copenhagen named it in 1954. Excavations in Pilestræde have led to the discovery of a well from the late 12th century, the remains of an ancient church, with graves dating to the 11th century, have been unearthed near where Strøget meets Rådhuspladsen
Crown of Christian V
The crown of King Christian V of Denmark was the crown used at the coronation of all of Denmarks absolutist kings. While the reign of such monarchs ended in 1840, the crown is used during a Danish kings castrum doloris. Used by the kings from Christian V to Christian VIII, made by Paul Kurtz in Copenhagen, 1670–1671. Gold with enamel and table-cut stones, 2 garnets and 2 sapphires, of which the largest dates back to Frederick I of Denmark. Frederik III had large parts of his daughters trousseau bought in Paris, but the jewellery was commissioned to Kurtz. He was, considered an outstanding jeweller, in 1670–1671 he made his principal piece of work, Crown of Christian V. In that way a white play of light was created, which was framed by blue and red in the sapphires and garnets of the crown ring, the crown forms part of the National Coat of arms of Denmark and the Royal Coat of arms. Since 1671, the crown has been the de facto symbol of the state power and it is included in stylized and varied forms in most state institutions, including ministries
A mint mark is a letter, symbol or an inscription on a coin indicating the mint where the coin was produced. Mint marks were first developed to locate a problem, if a coin was underweight, or overweight, the mint mark would immediately tell where the coin was minted, and the problem could be located and fixed. Another problem which could occur would be a dishonest mint official debasing the coin, the first mint marks, called Magistrate Marks were developed by the Greeks, and named the Magistrate in charge of producing that coin. Debasing a coin, or otherwise tampering with it, was a serious crime. For example, in 1649, the directors of the Spanish colonial American Mint at Potosi, the initials of the assayer as well as the mint mark were immediate identifiers when the coins were inspected. In some cases the symbols found in the field of ancient Greek coins indicated mints, dAs Alexander the Great conquered territories their mints struck coins with the types he used in Macedon but marked with a local symbol.
These mint marks were placed at the bottom of the reverse of the coin, the first part indicates that this was a coin with either SM for Sacra Moneta, M for Moneta, or P for Pecurnia. The second part was an abbreviation of the name of the mint such as ROM for Rome or LON for London, the final part indicated the workshop within the mint. Mint marks continued on copper coinage until the half of the seventh century. Mint names began to appear on French coins under Pepin and became mandatory under Charlemagne, in 1389, Charles IV adopted a system called Secret Points. This scheme placed a dot under the first letter of the legend on coins of Crémieu, under the letter for Romans. In the fifteenth century letters or symbols placed at the end of the legend indicating the mint were used in addition to Secret Points. In 1540, Francis I discontinued Secret Points in favor of a system of letters, A for Paris, B for Rouen, …, Z for Lyon, in the field. He made it the rule for mint-masters to place their personal marks on coins and this was one of the few royal practices continued by the Republic of France.
The mint letters continued until 1898 and the marks, supplemented by the mark of the Chief Engraver, are still used. Some Medieval English coins used mint names, when William III retired hammered coinage, branch mints which helped strike machine made coins to replace it put their initials below his bust. The Royal Mint established branches to coin sovereigns near the sources of gold and these issues show the initials of Sydney, Melbourne and Perth Australia as well as Canada, South Africa, and India. The privately owned Soho Mint obtained a contract to strike royal copper coins with steam presses and put its name on these coins and on coins it minted for other countries
These measures may be economy-wide, sector-specific, or industry specific. They may apply to all flows, or may differentiate by type or duration of the flow, there have been several shifts of opinion on whether capital controls are beneficial and in what circumstances they should be used. Capital controls were a part of the Bretton Woods system which emerged after World War II. This period was the first time capital controls had been endorsed by mainstream economics, in the 1970s free market economists became increasingly successful in persuading their colleagues that capital controls were in the main harmful. The US, other governments, and the big multilateral financial institutions A fixed exchange rate, 2) an independent monetary policy. In the first age of globalization, governments largely chose to pursue a stable exchange rate while allowing freedom of movement for capital, the sacrifice was that their monetary policy was largely dictated by international conditions, not by the needs of the domestic economy.
In the Bretton woods period, governments were free to have both generally stable exchange rates and independent monetary policies at the price of capital controls, the impossible trinity concept was especially influential during this era as a justification for capital controls. There have been three instances of capital controls in the EU and EFTA since 2008 – all of them triggered by banking crises, in its 2008 financial crisis, Iceland imposed capital controls due to the collapse of its banking system. As of 2015, Icelands capital controls have not been lifted – although Icelands government said in June 2015 that it planned to lift them. However, since the plans include a tax on taking capital out of the country. These capital controls were lifted in 2015, with the last controls being removed in April 2015 and it generally regulates inflows only and take ex-ante policy interventions. S. Or the complete freedom within regions such as the European Union, with its Four Freedoms, pro free market economists claim the following advantages for free movement of capital, It enhances overall economic growth by allowing savings to be channelled to their most productive use.
By encouraging foreign direct investment it helps developing economies to benefit from foreign expertise, allows states to raise funds from external markets to help them mitigate a temporary recession. Enables both savers and borrowers to secure the best available market rate, when controls include taxes, funds raised are sometimes siphoned off by corrupt government officials for their personal use. Pro capital control economists have made the following points, Capital controls may represent an optimal macroprudential policy that reduces the risk of financial crises and prevents the associated externalities. Global economic growth was on average considerably higher in the Bretton Woods periods where capital controls were widely in use, using regression analysis, economists such as Dani Rodrik have found no positive correlation between growth and free capital movement. Capital controls limiting a nations residents from owning foreign assets can ensure that domestic credit is available more cheaply than would otherwise be the case and this sort of capital control is still in effect in both India and China.
In India the controls encourage residents to provide cheap funds directly to the government, economic crises have been considerably more frequent since the Bretton Woods capital controls were relaxed
The eurozone, officially called the euro area, is a monetary union of 19 of the 28 European Union member states which have adopted the euro as their common currency and sole legal tender. The monetary authority of the eurozone is the Eurosystem, the other nine members of the European Union continue to use their own national currencies, although most of them are obliged to adopt the euro in future. Other EU states are obliged to join once they meet the criteria to do so, no state has left, and there are no provisions to do so or to be expelled. Andorra, San Marino, and Vatican City have formal agreements with the EU to use the euro as their official currency and issue their own coins. The ECB, which is governed by a president and a board of the heads of central banks. The principal task of the ECB is to keep inflation under control, the Eurogroup is composed of the finance ministers of eurozone states, but in emergencies, national leaders form the Eurogroup. Since the financial crisis of 2007–08, the eurozone has established and used provisions for granting loans to member states in return for the enactment of economic reforms.
The eurozone has enacted some limited fiscal integration, for example in peer review of each others national budgets, the issue is political and in a state of flux in terms of what further provisions will be agreed for eurozone change. In 1998 eleven member states of the European Union had met the euro convergence criteria, Greece qualified in 2000 and was admitted on 1 January 2001 before physical notes and coins were introduced on 1 January 2002 replacing all national currencies. Between 2007 and 2015, seven new states acceded, the 2012 data above of eurozone states were published by World Bank in May 2014. Latvia and Lithuania were not in the eurozone in 2012, the euro replaced the ECU1,1 at the exchange rate markets, on 1 January 1999. During 1979-1999, the D-Mark functioned as a de facto anchor for the ECU, the first enlargement of the eurozone, to Greece, took place on 1 January 2001, one year before the euro had physically entered into circulation. The next enlargements were to states which joined the EU in 2004, and joined the eurozone on 1 January in the noted, Cyprus, Slovakia, Latvia.
All new EU members joining the bloc after the signing of the Maastricht treaty in 1992 are obliged to adopt the euro under the terms of their accession treaties, nine countries are EU members but do not use the euro. Before joining the eurozone, a state must spend two years in the European Exchange Rate Mechanism, as of January 2017, only the National Central Bank of Denmark participates in ERM II. Denmark and the United Kingdom obtained special opt-outs in the original Maastricht Treaty, both countries are legally exempt from joining the eurozone unless their governments decide otherwise, either by parliamentary vote or referendum. The other seven countries are obliged to adopt the euro in future and they should join as soon as they fulfil the convergence criteria, which include being part of ERM II for two years. Sweden, which joined the EU in 1995 after the Maastricht Treaty was signed, is required to join the eurozone, Interest in joining the eurozone increased in Denmark, and initially in Poland, as a result of the 2008 financial crisis