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AKA, “Beggar Thy Neighbor” policy straight from the book.
SNB’s Jordan says Franc Can’t be Allowed to Strengthen Further
by Dermot Doherty
Mar 22 (Bloomberg) — The Swiss franc canÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t be allowed to appreciate further as ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œexcessiveÃƒÂ¢Ã¢â€šÂ¬Ã‚Â strength would put SwitzerlandÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s export industry at a ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œdisadvantageÃƒÂ¢Ã¢â€šÂ¬Ã‚Â and threaten the country with higher unemployment, Sonntag reported, citing Swiss National Bank board member Thomas Jordan.
The SNBÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s decision this month to purchase corporate bonds is aimed at reducing the risk premium by narrowing the spreads on such debt instruments, Jordan said in an interview in todayÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s
ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œWe are facing a severe recessionÃƒÂ¢Ã¢â€šÂ¬Ã‚Â and need to be ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œunconventionalÃƒÂ¢Ã¢â€šÂ¬Ã‚Â in dealing with it, Jordan said. The SNB will expand the money supply ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œas strongly as is neededÃƒÂ¢Ã¢â€šÂ¬Ã‚Â to prevent deflation, according to the newspaper.