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Minimum Exchange Rate And A Negative Interest Rate: The Swiss National Bank’S Unconventional Monetary Policy During Eurozone Volatility, Wally Bargeron
Minimum Exchange Rate And A Negative Interest Rate: The Swiss National Bank’S Unconventional Monetary Policy During Eurozone Volatility, Wally Bargeron
Independent Study Project (ISP) Collection
Monetary policy is one of the most important tools that a government has to influence its economy. This means the ability for a country to determine their own monetary policy is important to that country’s autonomy. Switzerland has consistently based its decisions on what would afford it the highest level of autonomy, including the decision not to join the European Union and subsequently the decision to retain their own currency.
The Swiss National Bank retains the mandate to keep price levels (inflation) stable, but it is challenged by an appreciating currency. Because the Swiss Franc is a safe-haven currency, money …