With your criticism of the negative interest rates the Swiss national Bank (SNB) aims to promote the bankers ‘ Association a debate on the monetary policy . This is a legitimate project. Nevertheless, the current monetary policy to reject, as it is the banks do in your yesterday, the study submitted that falls short of the mark.
Because of the banks ‘ arguments against the negative interest rates are well known: loss of interest dangerous price bubbles, such as in the Swiss real estate market, ruining the pension funds and expropriate the savers. However, at this point, the interesting questions begin: What, please, would be the Alternative?
Switzerland’s monetary policy is not an island. You need to note the international environment, notably the monetary policy of the European Central Bank (ECB). And has made it clear that they want to keep for a very long time very low or even negative interest rates.
To emancipate the SNB and its monetary policy to normalize, even if the ECB zuwartet so long?
This is not to say that the Swiss national Bank the monetary policy of the ECB in Frankfurt has to blindly follow. The SNB has been emancipated already, and the latest interest rate move by the ECB is not understood. This is a start.
So the question is: To emancipate the SNB and its monetary policy to normalize, even if the ECB wants to wait to years? And if Yes, what is the cost of this policy would be then? Specifically: What is the franc-Euro rate would be for the Swiss economy is able to cope? Or Switzerland would be willing to the balance sheet of their Central Bank by further purchases of foreign Currency inflates even further, in order to keep the franc-Euro rate in economically able to withstand the aspects? On all these important issues, the bankers Association says – nothing. When asked about this, hiding the Association behind the reference to the independence of the Central Bank.
But who says A, should also say B. Or better to remain silent.
Created: 24.10.2019, 19:48 PM
