|

Post Mortem on the Swiss Gold Initiative

Image by © Dreamstime

Image by © Dreamstime

by Frank Hollenbeck

The Swiss gold initiative has come and gone. It can be summarized as much ado about nothing. Even if it had passed, the initiative would have had no real impact on the central bank’s ability to print money or conduct monetary policy.

The central bank is currently defending a 1.2 Swiss-francs-to-the-euro floor. By pegging its currency, the Swiss central bank has basically opted to follow its neighbor’s excessively easy monetary policy. To keep the peg, the Swiss central bank has been purchasing euros by printing Swiss francs.

Continue reading…

The views expressed on austriancenter.com are not necessarily those of the Austrian Economics Center.

Related

  • February 25th, 2015

  • September 29th, 2017

  • September 30th, 2014

  • February 19th, 2014

  • January 9th, 2015

SHARE THIS ARTICLE!
JOIN OUR COMMUNITY AND STAY UPDATED!

Sendinblue Newsletter