https://t.co/tlXsLXZarK
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RT @rethinkecon: 'Going Beyond Exchange' from @TheMinskys @HeskevanDoornen https://t.co/GVNeY8gyIQ
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RT @ChrisGiles_: Hard or soft Brexit? The six scenarios for Britain https://t.co/Fk2hj8muah via @FT
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This is worth a read: https://t.co/gjARfKQ6JB
20/06/2017 9:58 PM
RT @PositiveMoneyUK: ...and it’s almost impossible to reduce our debts without causing a recession - Welcome to the debt trap! https://t.co…
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@Parker_Banking The pirates are in the accendency - on the pirate scale there is no difference between Trump and Pu… https://t.co/XbxmE9OJao
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RT @PositiveMoneyUK: Why are House Prices So High? https://t.co/kYNWqTc6kP
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@Omearanz Tax incentives point away from productive investments - asset price inflation is not productive of itself… https://t.co/zOCXPEj93U
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@Parker_Banking People without income and assets cannot be consumers - superfluous to economy - superfluous to soci… https://t.co/EHIOqdcNXH
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@Parker_Banking Full of rah rah platitudes: happened before no worries.Then machines replaced muscle/debt low, now… https://t.co/SMvdIfmpi1
15/06/2017 12:15 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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