SEVEN years after Denmark's property bubble burst, house prices in the country's biggest cities are already higher than at any point in recorded history.
It is one of the clearest signs that efforts to defend Denmark's euro peg with an unprecedented injection of cheap money may be distorting some corners of the economy. The central bank's benchmark deposit rate is minus 0.75 per cent after four cuts this year. Yields on government bonds are negative for maturities as long as five years. Mortgage-bond yields trade below zero for maturities up to three years.
"Perhaps it's okay to have negative rates, but there are a lot of other problems that derive from that," Sune Worm Mortensen, a director...