I was reading this article about Denmark central bank defending its currency peg:
In it he said they had "plenty of Kroner to defend against hedge funds"
My understanding of the issue is since Euro is coming under pressure for launching QE program, a lot of funds are moving their money into countries like Denmark -- which cause their currency demand spiked -- and hence its price.
But why did he say they had "plenty"? Apart from law, there's nothing physically stopping a country from keep printing its own currency right?
So I imagine its not hard at all for any country to defend a peg if its demand side spiked -- just keep printing currency to maintain the price?
Why does it seem that Denmark has limited supply of its own currency?