Switzerland: 2012 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director for Switzerland

International Monetary Fund

No 2012/106, IMF Staff Country Reports from International Monetary Fund

Abstract: This Article IV Consultation reports that Switzerland’s exchange rate floor, seen as credible by the markets, has halted appreciation and helped shore up the economy. Once growth recovers and inflation reaches more comfortable levels, maintaining the exchange rate commitment risks stoking inflation and hence, a return to free floating would be desirable. The risk of a real estate bubble has been heightened by loose monetary conditions, and new macroprudential instruments are under consideration to address this risk.

Keywords: ISCR; CR; policy; authority; appreciation; crisis; risk; candid policy recommendation; policy option; inflation outlook; exchange rate appreciation; exchange rate floor; Basel III counter-cyclical capital buffer; Exchange rates; Insurance companies; Fiscal rules; Inflation; Global; commitment risk; policies-safeguarding credibility; Mortgages (search for similar items in EconPapers)
Pages: 56
Date: 2012-05-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25895 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2012/106

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().