SNB's Jordan on Franc, Foreign-Reserve Intervention

The transcript discusses the overvaluation of the Swiss franc, the challenges in boosting inflation, and the monetary policy strategies employed by Switzerland, including negative interest rates and foreign exchange interventions. It highlights the global economic influences, particularly the role of central banks like the ECB, and the ongoing efforts to regulate Swiss banks and finalize Basel III. The conversation also touches on the conundrum of low inflation despite closed output gaps and full employment in many economies.

What is one of the main reasons for the Swiss franc's overvaluation?

• High inflation rates

• Strong economic growth

• Negative interest rates

• Weak economic growth

What is the current monetary policy stance of Switzerland?

• High inflation targeting

• Fixed exchange rates

• Negative interest rates

• Positive interest rates

Why is Switzerland's economic situation different from the Eurozone and the US?

• Closed output gap

• High inflation

• Negative output gap

• Strong currency depreciation

What is a significant factor affecting inflation in Switzerland?

• Increased government spending

• Rising telephone contract costs

• Appreciation of the Swiss franc

• High fuel prices

What is the 'conundrum' faced by many economies regarding inflation?

• High inflation despite low wage growth

• Low inflation despite closed output gaps

• Rising unemployment with high inflation

• Decreasing interest rates with high inflation

What is the current status of Swiss banks in terms of regulation?

• They are in the process of fulfilling requirements

• They are exempt from Basel III regulations

• They have completed all regulatory requirements

• They have not started the regulatory process

What is the goal of the ongoing Basel III negotiations?

• To increase interest rates

• To close the output gap

• To finalize global banking regulations

• To reduce inflation