In 1813, the Kingdom of Denmark declared state bankruptcy, unable to service its debts following the costly Napoleonic Wars and the loss of its fleet to the British. The government devalued its currency and restructured its debt, imposing severe losses on creditors and sparking widespread economic hardship in Copenhagen and across the kingdom. The bankruptcy marked the end of Denmark's status as a major European financial power and ushered in a period of austerity.

The bankruptcy influenced Danish Romantic literature, with poets like Adam Oehlenschläger reflecting on national decline and the loss of glory in their works. The event also became a reference point in Scandinavian economic discourse, symbolizing the costs of war and the fragility of state finances, themes that recur in the poetry of the period.