cloudalps (hidden peaks)

High Tech Economics – implications from a global perspective.

Euro Crisis – suffering in the safe haven of Switzerland

By now, it is widely accepted that the SNB (Swiss National Bank) was merely “passing the deflationary parcel” after months of severe suffering by the Swiss export industries (which tend to be critical for any small, open economy). The SNB is reacting to pressure “reacting to pressure that has arisen from the actions of other governments” which has become significant as the above graphs indicate – a negative Swiss Franc Swap rate underlines the same message of (irrational?) demand for the Franc even at negative interest.

The even more stunning result stems from the SNB’s announcement to do everything to keep the CHF/Euro forex rate at least at 1.20 – and this worked immediately without any change:

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Filed under: Macroeconomics, , , ,

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