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Tag Archives: Switzerland

The role of the Swiss National Bank (SNB)

(Disclosure: Some of the links below may be affiliate links) What the Swiss National Bank (SNB) does is not very clear for many people in Switzerland. So, I thought it would be interesting to research this subject and write about my findings. The Swiss National Bank is quite famous, even abroad, but what does it really do? It is because of it that we do not have any interest rate in our bank accounts? Let’s see in detail what this central bank is doing. We will also...

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“Unabhängigkeit der Nationalbank (Independence of the SNB),” FuW, 2020

Finanz und Wirtschaft, July 25, 2020. PDF. Von verschiedenen Seiten werden Ansprüche an den Gewinn der Nationalbank gestellt. Es sollte in der Kompetenz der SNB liegen, zu entscheiden, welchen Teil ihrer Bilanz sie nicht zur Erfüllung ihrer Aufgaben benötigt. Die Europäische Zentralbank ist Kritik gewohnt. Immer wieder sieht sie sich mit dem Vorwurf konfrontiert, ihre Kompetenzen zu überschrei­ten. Dabei spielt die Diskussion über monetäre Staats­finanzierung eine...

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Chart of the weekGlobal Uncertainty Related to Coronavirus at Record High

By Hites Ahir, Nicholas Bloom, and Davide Furceri The coronavirus continues to spread. As more countries impose quarantines and social distancing, the fear of contagion and income losses is increasing uncertainty around the world. A new measure of uncertainty related to pandemics and other disease outbreaks finds that uncertainty around the coronavirus is exceptionally high and is much higher than in past outbreaks. To quantify uncertainty related to the coronavirus crisis and compare it...

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Switzerland Peps Up SMEs

How Switzerland peps up SMEs: Banks are encouraged to extend credit (at 0%). The treasury guarantees the loans. The SNB refinances banks and accepts the guaranteed loans as collateral. Fast and efficient. Eventually, some of these loans will turn into grants of course. But that’s ok; the first-best response to a shock with asymmetric effects does involve transfers if markets are incomplete. You Might Also Like...

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Cashing In: How to Make Negative Interest Rates Work

By Ruchir Agarwal and Signe Krogstrup Many central banks reduced policy interest rates to zero during the global financial crisis to boost growth. Ten years later, interest rates remain low in most countries. While the global economy has been recovering, future downturns are inevitable. Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond. To get around...

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Countries in the IMF Financial Spotlight in 2019

By IMFBlog In 2019, the IMF will complete 14 assessments under the Financial Sector Assessment Program (FSAP). Eight of this year’s assessments are mandatory: Australia, Austria, Canada, France, Italy, Poland, Singapore, and Switzerland. The other six are voluntary: Algeria, Bahamas, Kuwait, FYR Macedonia, Malta, and Thailand. The FSAP is an in-depth analysis of a country’s financial sector. It serves as the principal tool for assessing countries’ financial stability. The IMF conducts about...

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Sovereign Money Referendum: A Swiss Awakening to Fractional-Reserve Banking?

On Sunday 10 June 2018, Switzerland’s electorate voted on a referendum calling for the country’s commercial banks to be banned from creating money. In a country world-famous for its banking industry, this was quite an interesting turn of events. Known as the Sovereign Money Initiative or ‘Vollgeld’, the referendum was brought to the Swiss electorate in the form of a ‘Popular Initiative‘. The Sovereign Money referendum...

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An Imbalance in Global Banks’ Dollar Funding

By John Caparusso, Yingyuan Chen, Hideo Hashimoto, David Jones, Will Kerry and Aki Yokoyama June 12, 2018 Versions in Español, Deutsche, Français, 日本語, Português The US Treasury is issuing more T-bills, potentially putting upward pressure on the interest rates non-US banks must pay for short-term dollar funding (photo: Jennifer Hack/KRT/Newscom) For companies and investors outside the United States, the dollar is often the currency of choice. Surprisingly, though, US banks play only a...

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Le bilan de la BNS, Une arme de destruction massive

Chers amis lecteurs, voici le drame de la Suisse. Il s’appelle « Politique monétaire non conventionnelle« . Une arme de destruction massive que personne n’ose approcher, ni même aborder! Elle consiste en l’art de se faire un bilan sans bases réelles et avec en contreparties de l’endettement! Le directoire de la BNS a réussi l’exploit de se fabriquer de toutes pièces des réserves monétaires en devises étrangères de...

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“Vollgeld – Was spricht dagegen? (Sovereign Money—What are the Problems?),” RABE, 2018

Vollgeld-Initiative: Warum sie gefährlich ist Die Vollgeld-Initiative will die Schweizer Geldpolitik komplett umkrempeln. Künftig soll nur noch die Nationalbank Geld herstellen dürfen, sowohl Banknoten und Münzen als auch das elektronische Geld. Die Schweizer Geschäftsbanken wie die UBS oder die CS, die heute 90% des elektronischen Geldes herstellen, soll das künftig verboten sein. Die Vollgeld-KritikerInnen warnen von...

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