National Bank of Denmark warns of growing bubble in Copenhagen
Copenhagen market close to danger, “statistical bubble test” shows
The National Bank of Denmark has used a "statistical bubble test" for the first time to show house price increases nationally look sustainable, but those in Copenhagen may be heading for trouble.
The central bank presents the results of its test in a News from Nationalbanken article, seeking to identify bubbles by assessing whether prices are rising on the basis of fundamentals, or a self-reinforcing cycle of expectations that prices will rise further. The test found clear evidence of bubbles in
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