in previous monetary systems. Even though the Danish central bank governor does not participate in the governing council of the ECB, where the monetary policy and guidelines are formulated and adopted, Denmark have other channels of influence. Even if Denmark did have a seat at the governing council of the ECB, it would not necessarily get more influence. Small member countries in the governing council of the ECB cannot generally expect that they will get an equivalent say compared to larger members due to informal rules and practices. Denmark's finance minister participates in the ECOFIN council in the Council of the European Union and therefore has some interactions with other eurozone countries and participates in the decision-making process in this institution. The tendency of ECOFIN topics increasingly being transferred and therefore more discussed in the Eurogroup meetings is therefore again a limitation for Danish influence on monetary decisions. Denmark does not participate in Eurogroup meetings but participates in preparatory meetings before, and meetings after the actual Eurogroup meeting. Denmark is interested in being kept informed as decisions in these meetings will also affect Denmark's economy. Other channels of influence and interaction with other officials can be done through ESCB framework, IMF, OECD and the ECB committees in which the Central Bank of Denmark also participates. This participation in the ECB committees is essential, as seen in the fact that its influence over monetary policy has improved compared to earlier systems. The ECB can also use adjustment of interest rates to influence the exchange rate of the euro. An exchange rate is determined bilaterally relative to other currencies. If there is higher interest in one country relative to another, it will attract foreign capital and therefore the value of the currency will increase. Due to the fixed exchange rate regime in Denmark, the exchange rate level will always be close to the one of the eurozone's, and then the inflation rates will also be similar. A fixed exchange rate is a suitable tool to bring down inflation. A growth in economic activity can lead to inflation. Inflation in an economy is not necessarily hurtful as it can enable economic growth and create price and wage adjustment. There are several attractive elements of low levels of inflation while having too high levels of inflation in the long run will result in the increase of prices due to higher levels of employment. Higher