Swiss Franc – Overburdened central bankers – Süddeutsche.de

Swiss Franc – Overburdened central bankers – Süddeutsche.de

• The Swiss central bank has given up the minimum rate of 1.20 francs per euro. The franc now costs almost twice as much as 20 years ago.
• In order for the central bank has indeed returned to their independence. However, the export enterprises in the country impacted hard.
• If a central bank economic policy operates instead of monetary policy, which can be quite dangerous.

A comment by Claus Hulverscheidt

Who in the holiday of Switzerland spends who discovers there if he wants, wonderful things: majestic towering three thousand, dramatic curved valleys, almost cheesy beautiful villages and huts. Some things, however, you are looking in the holiday regions in vain: Swiss, for example. The Confederates drive yourself to Austria, France and Italy. Also there is nice – for Franken-owners but above all much cheaper

Holidays in the euro area crisis -. This trend will be reinforced. The pockets are full of Swiss tourists than ever since the National Bank (SNB) no longer holds the rate of the national currency artificially at 1.20 francs per euro. Instead, the ratio is now one to one, the Franks costs almost twice as much as around 20 years ago.

For the federal establishments is a harsh burden. Their products, their chalets and services are becoming more expensive for foreigners, there is already some ski resort in the country eerily empty. Nevertheless, many companies and Feriehusudlejernes rested in the last few years that the SNB will prevent a further increase of the franc forever – with fatal outcome: Today, countries in which the adjustment pressure was greater, not only great cost advantages, the service quality is often significantly better.

A terrible end

Of course, the central bankers knew the problems as they cut down its decision, and of course this also has its advantages. Thus, the bank receives with the abandonment of the euro-linking their monetary independence back. Also, it is compelled no longer in a further easing of monetary policy by the European Central Bank (ECB) to buy more and more to defend the franc euro. But even if consumed with terrors may be better than a horror without end: For the Swiss companies, it remains a terrible end

Defender of the SNB refer keen to point out that it is the central bank succeeded in printing. to mitigate the Swiss economy, at least temporarily. However the upward pressure exerted upon the Franks for years less than the homemade reflection of the economic problems in the euro zone. Both are wrong – and ignored but that there was a lack of beginning the SNB to a convincing exit strategy. With its chaotic turnaround on Thursday that the central bankers have made impressive proof.

The shock waves that roll around the globe since then and have not yet been properly recorded the Swiss economy, occupy two different things. First, exchange rate manipulations can never eliminate structural problems, but only hide – whether there are such problems only in one of the affected currency areas, or both. In the case of euro and Swiss franc are both. And secondly, a central bank that operates instead of monetary policy economic policy, embarks on a minefield. Accordingly, difficult to leave this country without major damage again shortly.

Not even the members of the Governing Council should think of when they meet in Frankfurt on Thursday to go to a several hundred billion-euro program advise buying up European government bonds. With the package, the economy in the euro zone is to be boosted – so clearly economic political project, as it is clearly hard to imagine. The realm into which the ECB opened it, teeming from danger. Was measured by the area from which the Swiss National Bank has now retired with some dents and dings, a children’s playground.