Targeting the Base—the Swiss Experience

Kurt Schiltknecht
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Kurt Schiltknecht: Swiss National Bank

Chapter 7 in Monetary Targets, 1981, pp 211-234 from Palgrave Macmillan

Abstract: Abstract At the beginning of 1975, the Swiss National Bank decided to adopt a money stock target. The adjusted monetary base was chosen as an instrument for controlling the growth in the money stock. The aim of this policy was to maintain a stable price level. When the decision for targeting the money stock was taken, the Swiss National Bank realised that a revaluation of the Swiss franc would be inevitable. However, the size of the revaluation came as a surprise. The exchange rate difficulties emerging in the autumn of 1978, in particular, have raised the question whether money stock targeting under a system of flexible exchange rates is the appropriate way of conducting monetary policy in a small open economy.

Keywords: Exchange Rate; Monetary Policy; Central Bank; Money Supply; Foreign Exchange Market (search for similar items in EconPapers)
Date: 1981
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-16555-1_8

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DOI: 10.1007/978-1-349-16555-1_8

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