SNB Archive

SZ News: ‘Hope’ of SNB Countering Franc Gains

The Swiss have been buying euro all along to support their exporters (at the expense of the macro economy but that’s another story). No doubt other nations are/will do same, also to protect exporters, and do the best they can managing risk of their euro denominated financial asset portfolios. Over the last ...Read More

Swiss National Bank confirms beggar thy neighbor policy

[Skip to the end] 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 can’t be allowed to appreciate further as “excessive” strength would put Switzerland’s export industry at a “disadvantage” and threaten ...Read More

In case you thought the Swiss National Bank understands its monetary system

[Skip to the end] Interesting the legendary Swiss National Bank doesn’t yet understand it’s own monetary system. Seems their understanding has yet to move beyond the days of the gold standard. SNB Moves Are Defense Against Deflation, Jordan Says by Simone Meier Mar 19 (Bloomberg) — Swiss central bank Governing Board member ...Read More

SNB Not Pursuing ‘Beggar-Thy-Neighbor’ Policy, Roth Tells FT

[Skip to the end] Looks like he’s been reading my blog. It is a beggar thy neighbor policy, by definition. SNB Not Pursuing ‘Beggar-Thy-Neighbor’ Policy, Roth Tells FT by Simone Meier Mar 17 (Bloomberg) — Swiss central bank President Jean- Pierre Roth said the bank is ready to stem further gains in ...Read More

Re: SNB and personal income

[Skip to the end] (email exchange) We’ll see if the SNB can borrow all the USD it needs without the Fed on an ongoing basis. External debt like this is the stuff of most government financial blowups. Low crude prices and falling US import demand are keeping USD ‘hard to get’ for ...Read More

Roubini blog

Roubini totally doesn’t get it. The point of CB intervention is to keep interest rates at their target rates, not to provide funds for lending, as described in previous posts. This plan will succeed at doing that, best I can tell. It’s all about price, not quantity. That’s all a CB can ...Read More