SNB & CHF

The future of tourism? A couple of hikers by the Seealpsee in northeastern Switzerland on May 17 (Keystone) Going on holiday in one’s own country and in the countryside, in smaller groups and sometimes with restrictions – this is the new reality to which the tourism industry must adapt, according to a study by the University of St Gallen. Mobility and socialising: both are undesirable in times of Covid-19. The tourism industry was therefore the first to be affected...

According to the Federal Reserve’s calculations, the US dollar in Q1 pulled off its best quarter in more than twenty years – though it really didn’t need the full quarter to do it. The last time the Fed’s trade-weighed dollar index managed to appreciate farther than the 7.1% it had in the first three months of 2020, the year was 1997 during its final quarter when almost the whole of Asia was just about to get clobbered. In second place (now third) for the dollar’s...

(Disclosure: Some of the links below may be affiliate links) A few months ago, I read Deep Work, by Cal Newport. This book is excellent if you want to improve your efficiency. This book is about the benefits of working deeply. If you practice deep work, you will be able to be much more efficient. It means you can achieve more things for you. But this also means that you can achieve more at your job. And achieving more at your job can make you more valuable and can...

Since the beginning of the year, the corona crisis has come to monopolize the news coverage to the extent that a lot of very important stories and developments either went underreported or were ignored altogether. One such example was the very surprising ruling out of the German Constitutional Court in early May, that challenged the actions and remit of the ECB. This decision could have severe repercussions if it were to be held up, but the reactions to it were...

Listen to the Audio Mises Wire version of this article. People often ask me, “How are the Austrians different from the Chicago School economists? Aren’t you all free market guys who oppose big-government Keynesians?” In the present article I’ll outline some of the main differences. Although it’s true that Austrians agree with Chicago economists on many policy issues, nevertheless their approach to economic science can be quite different. It’s important to...

The Theory of Interest and Prices https://monetary-metals.com/the-theory-of-interest-and-prices-in-paper-currency/

The Theory of Interest and Prices https://monetary-metals.com/the-theory-of-interest-and-prices-in-paper-currency/

Swiss Franc The Euro has risen by 0.05% to 1.0599 EUR/CHF and USD/CHF, May 26(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The heightened tensions between the US and China sapped risk-appetites before the weekend, but appear to be missing in action today. Equity markets have rebounded strongly. Nearly all the equity markets in the Asia Pacific region rose (India was a laggard) led by an almost 3% rally in...

We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity gains, while the REER assumes constant productivity in comparison to trade partners. Who has read Michael Pettis, knows that a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to spend more. This is partially...

Zurich Airport, as pictured in mid-March (Keystone / Ennio Leanza) The head of a major Swiss travel agency has complained that Swiss International Air Lines (SWISS) is not helping to reimburse clients fast enough. In the event of cancellations such as those prompted by the Covid-19 pandemic, Swiss package tour operators are legally obliged to provide refunds. But according to Thomas Stirnimann, the chief executive officer of Hotelplan, SWISS is not repaying the...