Fighting the Financial Crisis: The Social Construction and Deconstruction of the Financial Crisis in Denmark

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    Abstract

    This paper is concerned to show how the Danish political elite interpreted and responded to the consequences of the 2008 financial crisis for the Danish economy. In particular, the paper describes how this interpretive construction focused primarily on three features of the Danish context to the exclusion of other perspectives; the first was an emphasis on the problems of the financial sector, of interest rates and state finances; the second was that Danish productivity increases were falling behind other comparable countries and part of the solution required new strategies towards labour and unemployment benefits; thirdly, the adverse effects of the crisis were causing an increase in government expenditure and a decline in government revenues which was rapidly becoming unsustainable. As a consequence, the Danish elite fell into the broader interpretation of the crisis embedded in the dominant view within the EU institutions as well as among the international financial institutions such as the IMF and the World Bank, that a period of austerity and fiscal consolidation was the required remedy, even though this was likely to be pro-cyclical in its effects. However, the paper shows that alternative data which is more reflective of Denmark’s position in the global economy and the trajectory and form of its growth over the last decade reveals that the interpretation of the Danish elite has been too narrow and neglects the distinctive roots of Denmark’s competitive strengths. Indeed, by respond-ing in the way which they have, the Danish elite is in danger of undermining the very conditions of Denmark’s competitiveness.
    Original languageEnglish
    Title of host publicationElites on Trial
    EditorsGlenn Morgan, Paul Hirsch, Sigrid Quack
    Number of pages28
    Volume43
    Place of PublicationBingley
    PublisherEmerald Group Publishing
    Publication date2015
    Pages371-398
    ISBN (Print)9781784416805
    ISBN (Electronic)9781784416799
    DOIs
    Publication statusPublished - 2015
    SeriesResearch in the Sociology of Organizations
    Number43
    ISSN0733-558X

    Cite this

    Hull Kristensen, P. (2015). Fighting the Financial Crisis: The Social Construction and Deconstruction of the Financial Crisis in Denmark. In G. Morgan, P. Hirsch, & S. Quack (Eds.), Elites on Trial (Vol. 43, pp. 371-398). Bingley: Emerald Group Publishing. Research in the Sociology of Organizations, No. 43 https://doi.org/10.1108/S0733-558X20150000043025