Swiss Economicblogs.org
In 1978 the SNB established for the first time a cap on the Swiss franc, to prevent the inflows of American funds into Switzerland that escaped the US stagflation but caused some “imported inflation” in Switzerland, too. The Swiss introduced a DEM/CHF floor at 0.80 CHF on October 1, 1978, having known that the US government and the Fed were ready to fight inflation and the weak dollar. About one month later the FOMC hiked rates to 9%. Paul Volcker With the money supply (M1) targeting...
Read More »Lessons from History: The Volcker Moment and the First Cap on CHF
