RT @JoshBBornstein: 65 year study confirms my research: Tax cuts don't lead to economic growth. Ping @Nick_Xenophon , @BCAcomau https://t.…
19/08/2017 9:13 PM
RT @attn: .@Schwarzenegger has a blunt message for Nazis. https://t.co/HAbnejahtl
18/08/2017 9:38 PM
RT @PositiveMoneyUK: Make Monetary Policy Fair: It's time to explore alternatives to 'conventional' QE. https://t.co/m6CFVojm7w #QEforPeopl…
18/08/2017 9:35 PM
@deirdrekent To be expected when income is taxed and capital gain not...
16/08/2017 9:22 PM
@bernardchickey @YourHomeLoanNZ Add ring fencing loses / deal to negative gearing and we might see some balance develop in the economy.
16/08/2017 7:36 PM
@bernardchickey Or take the job and do the right thing anyway - the RBNZ is "independent" after all...
16/08/2017 7:34 PM
@bernardchickey Not take the job because you would know you would be on a hiding to nothing. The link between earn… https://t.co/nxPRuAaT6t
16/08/2017 7:31 PM
RT @theyearofelan: Sure, the cancer was aggressive. But the chemotherapy was also very aggressive. There was aggression on both sides
16/08/2017 7:27 PM
@bernardchickey DTI+LVR+OCR all needed for financial stability & inflation.RBNZ can then push back on dumb policy f… https://t.co/CqXISZUHGq
16/08/2017 7:27 PM
@SelwynPellett Farming capital gains makes it hard to pay current expenses hence the need to externalise costs. Th… https://t.co/J1yevZAHft
14/08/2017 5:46 PM
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19
MAR 14

There is another way




The change in the OCR this week and the Grant Spencer (RBNZ Deputy Governor) traffic light comments around (none) currency intervention got me thinking about Switzerland again, so I went back and had a look where the Swiss were at in terms of monetary policy and their currency intervention. There they are still playing a long term game.

"The Swiss National Bank (SNB) is maintaining its minimum exchange rate of CHF 1.20 per
euro. The Swiss franc is still high. The SNB stands ready to enforce the minimum exchange
rate, if necessary, by buying foreign currency in unlimited quantities
, and to take further
measures as required. With the three-month Libor close to zero, the minimum exchange rate
continues to be the right tool to avoid an undesirable tightening of monetary conditions in the
event of renewed upward pressure on the Swiss franc. The SNB is leaving the target range for
the three-month Libor unchanged at 0.0–0.25%" 

The full Swiss National Bank policy Statement can be found here.

This type of thinking would be music to the real economy in New Zealand.
 


tags: ocr, interest rates, currency, exchange rate, swiss, monetary policy, intervention, switzerland
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