Denmark "Defends" the Krone by Lowering Interest Rate: More Which Way Is Up Problems

Usually when a country takes steps to "defend" its currency, the problem is that the value of its currency is falling in world currency markets. This is most often due to higher inflation in the country in question, although the situation can be worsened by speculative attacks. Raising interest rates is a standard form of defense, since it makes it more desirable to hold assets denominated in that currency.

Against this normal pattern, the NYT told readers that Denmark was "defending" its cu...