Inflation targeting and monetary policy in practice: the experience of the Swiss National Bank

Carlos Lenz and Attilio Zanetti

Chapter 28 in Research Handbook on Inflation, 2025, pp 583-591 from Edward Elgar Publishing

Abstract: This chapter provides an in-depth examination of the Swiss National Bank's (SNB) monetary policy and its commitment to price stability. It highlights the institutional setup granting the SNB high independence and a clear mandate focused on price stability. The chapter outlines Switzerland's strong public preference for low inflation, rooted in its historical performance of maintaining low inflation rates. It details the SNB's monetary policy strategy, including the conditional inflation forecast and the use of additional policy measures like foreign exchange interventions and a negative policy rate. The chapter also analyses the SNB's responses to major economic shocks, such as the Great Financial Crisis and the COVID-19 pandemic, and explains why inflation in Switzerland was lower compared to other countries during the post-pandemic period. The chapter concludes by emphasizing the role of the SNB's consistent and credible monetary policy in achieving its price stability objective.

Keywords: Swiss National Bank; Price stability; Monetary policy; Inflation control; Foreign exchange interventions (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035327751
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