Distorted Swiss surplus not good base for policy – Jordan
Multinationals’ operations, higher nominal rates abroad and Swiss franc appreciation increase surplus
Several statistical distortions boost Switzerland’s current account surplus, making it unsuitable as a basis for setting monetary policy, said Thomas Jordan, chairman of the Swiss National Bank, in a speech at the University of Basel on November 23.
Switzerland has registered a hefty current account surplus over the last decade – in 2016, it was one of the highest in the world, at 10% of GDP. However, in the Swiss case, it “is not a good measure for assessing trade flows and changes in the
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