Artikel

Who put the Holes in the Swiss Cheese? Currency Crisis Under Appreciation Pressure

We examine the reasons why the SNB gave up the lower floor of the 1.20 CHF/EUR exchange rate arrangement. Three types of shocks played a role: Exogenous shocks to the autonomous component of money demand, interest rate decreases of the ECB, as well as appreciation expectations. In order to defend these shocks, the SNB intervened heavily in the foreign exchange market. This led to an accumulation of reserves in the central bank’s balance sheet of the size of 80% of Swiss GDP. Interestingly, the SNB did not lower the interest rate into the negative range during the time period where the peg was in place. Hence, the SNB did not do "whatever it takes" to defend the peg.

Sprache
Englisch

Erschienen in
Journal: Journal of Central Banking Theory and Practice ; ISSN: 2336-9205 ; Volume: 7 ; Year: 2018 ; Issue: 1 ; Pages: 43-57 ; Warsaw: De Gruyter Open

Klassifikation
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Thema
Foreign exchange market
Swiss crisis
UIP
Currency crisis.

Ereignis
Geistige Schöpfung
(wer)
Berthold, Kristin
Stadtmann, Georg
Ereignis
Veröffentlichung
(wer)
De Gruyter Open
(wo)
Warsaw
(wann)
2018

DOI
doi:10.2478/jcbtp-2018-0003
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Berthold, Kristin
  • Stadtmann, Georg
  • De Gruyter Open

Entstanden

  • 2018

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