The Swiss central bank says it is to enhance flexibility in steering money market interest rates This will be added to the SNB’s monetary policy repertoire moving forward but not before some test operations are conducted. For the time being, the central bank implements monetary policy by setting the SNB policy rate so this just adds to the tools they can play around with. However, I still see the key policy rate as being the main weapon in the armory. The full announcement can be found here. [embedded content] You Might Also Like Ukraine and the Next Wave of Inflation, Part II, Can Russia Enact a Gold Standard? 2022-03-13 Can Russia Enact a Gold Standard? In Part I we discussed how
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- The Swiss central bank says it is to enhance flexibility in steering money market interest rates
This will be added to the SNB’s monetary policy repertoire moving forward but not before some test operations are conducted. For the time being, the central bank implements monetary policy by setting the SNB policy rate so this just adds to the tools they can play around with. However, I still see the key policy rate as being the main weapon in the armory.
The full announcement can be found here.
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Ukraine and the Next Wave of Inflation, Part II, Can Russia Enact a Gold Standard?
2022-03-13
Can Russia Enact a Gold Standard?
In Part I we discussed how the fallout from the Russian invasion of Ukraine will lead to inflation, but not in the way most people think. In Part II we discuss the possibility of Russia repudiating the dollar and going on a gold standard. Can they do it? How would the world react? Why not enact a Bitcoin Standard instead?
SNB says remains prepared to intervene in FX market if necessary
2022-03-07
Franc is currently sought after as a refuge currency. Franc appreciation also reflects inflation differential between Switzerland and other countries. The franc continues to be highly valued SNB looks at overall currency situationIndividual currency pairs do not play a special role. Some verbal intervention there by the SNB but in typical cases for the franc, actions speak louder than words.
SNB Jordan: Strong Swiss Franc limits Swiss inflation
2022-02-01
SNBs JordanStrong CHF limits swiss inflation
See no sign swiss wage price cycle
Inflation stubbornly above 2% would lead to policy tightening
Difficult to say whether global rates have turned, much still depend on economic development
CHF has remained stable in real termsAsked about real estate prices, Jordan says monetary policy aims primarily at price stabilityThe SNB is not investing in crypto currencies
The USDCHF has moved to new session lows (higher CHF) and in the process has moved below the 100 hour MA at 0.92677. The 38.2% at 0.9246 is the next target on the downside. Stay below the 100 hour MA is now a close risk for the sellers. USDCHF falls below the 100 hour MAADVERTISEMENT – CONTINUE READING BELOW
SNB says successfully tested use of digital currency to settle transactions with top investment banks
2022-01-15
The latest trial could see the introduction of central bank digital currency move a step closer in Switzerland. The SNB says that they integrated the digital currencies into payment systems and used them in simulated transactions involving UBS, Credit Suisse, Goldman Sachs, and Citigroup.
Testing The Supply Chain Inflation Hypothesis The Real Money Way
2021-12-18
Basic intuition says this is a no-brainer. Producer prices rise, businesses then pass along these higher input costs to their customers in the form of consumer price “inflation” so as to preserve profits. This is the supply chain hypothesis. Statistically, we’d therefore expect the PPI to lead the CPI.And this was expected for much of Economics’ history, taken for granted as one of those self-evident truths (kind of like the Inflation Fairy). After the dreadful experience of the Great Inflation, and the dreadful performance of Economics during it, a few scholars went back to take a second look.One of the most cited contrary studies was published in 1995 by Todd Clark of the Federal Reserve’s branch in Kansas City (Economic Review; vol. 80, issue Q III, 25-39). Using econometric evidence,
Why Governments Hate Gold
2021-11-27
Do governments hate gold? The answer: Yes — Governments hate gold because they cannot print it, and it is difficult for them to control.
Why Do Central Banks Want Higher Inflation?
2021-10-23
Why do Central Banks want higher inflation? The debt ceiling debate in U.S. Congress and related political nonsense brings even more to light the exponential growth in US federal government debt. US government debt has doubled in the 10 years since the last major debacle Congress created over raising the debt ceiling back 2011.
The Inflation Tide is Turning!
2021-10-09
In our post on January 28, 2021 “Gold, The Tried-and-True Inflation Hedge for What’s Coming!” we outlined four reasons that we expect higher inflation over the next several years.
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