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Medical ventilators constructed at the OES medical supply company in Britain, 23 March 2020. The British government has also asked top engineering companies to retool their production to make ventilators. (Keystone / Neil Hall) Around 50 countries have introduced curbs on exports of medical supplies, including ventilators. This poses a major risk for poor countries, a Swiss study has revealed. The past fortnight has seen nations around the world scrambling for...

When Mario Draghi’s tenure was approaching its end, I argued for a sterner governor for the European Central Bank (ECB); hence, I was not even slightly enthusiastic when Draghi’s successor turned out to be Christine Lagarde—a patent dove, as can be inferred from her ideological proximity to a famous Keynesian like Olivier Blanchard. However, I am here to defend the stance she took with her March 12 speech—in which, addressing the economic turmoil spurred by...

The feedback loop has reversed: by saving more, people will spend, borrow and speculate less, draining the fuel from any broadbased expansion. In eras of confidence and certainty, people save less and spend more freely. When we’re confident that good times are not only here but will continue, we not only spend more freely, we’re more inclined to borrow money and speculate on the shimmering promises of more good times ahead. In eras of uncertainty, people save more...

However high the death rate of the COVID-19 coronavirus becomes, the governmental response to the threat will be even more dangerous. If the current blockade of economic life continues, more people will die from the countermeasures than from the virus itself. In a short time, the basic supply of everyday goods will be at risk. By interrupting the global transport and supply chains, important medicines will be missing and food supplies will be insufficient. This is...

New packages from the SNB There is no upper limit for virus fund Drawdowns can be made at any time Says interest rates to correspond to the SNB policy rate (-0.50%) Will be available from tomorrow Full statement: The coronavirus pandemic is having a serious impact on the Swiss economy. To combat this crisis, it is essential that companies have access to credit and the banking system has access to liquidity. The Confederation, the SNB and the Swiss Financial Market...

Swiss Franc The Euro has risen by 0.02% to 1.0589 EUR/CHF and USD/CHF, March 25(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Global equities are marching higher. While the Dow Jones Industrials posted its biggest advance since 1933, the US is lagging behind other leading benchmarks. The MSCI Asia Pacific advanced, led by Japan’s Nikkei’s 8% gain. It was third consecutive gain, during which time the Nikkei has...

Was kommt uns Deutschen in den Sinn, wenn wir an die Schweiz denken? Hohe Berge, blaue klare Seen, freundliche Menschen und die Schweizer Banken natürlich. Die Schweizer haben alle Geld. Das weiss jedes Kind in Deutschland. Oder so lautet zumindest das Vorurteil, das viele Deutsche gegenüber den Schweizer haben. Ist das aber wirklich so? Ich wage in diesem Blogbeitrag einen Vergleich der beiden Länder in Sachen Vermögen und Vermögensverteilung. Durchschnitts-...

Switzerland has imposed major restrictions on public life in a bid to contain the coronavirus pandemic.  (Keystone) Switzerland is headed towards a severe recession this year due to the economic fallout of the coronavirus, experts warn. If the pandemic is brought under control, the Swiss economy should rebound strongly in 2021. The BAK Economics Institute, a Basel-based think tank, says the collapse of private spending will trigger a global recession. For...

© Aquanaut4 | Dreamstime.com Lombardy, the region in northern Italy where the coronavirus outbreak first took off in Europe, now has fewer per capita cases testing positive for the virus than some Swiss cantons. Recent data from Italy show there were 179 cases per 100,000 in Lombardy. In Ticino, Switzerland’s worst affected canton, there were 329 cases per 100,000. Geneva (231) and Vaud (211) had Switzerland’s next highest rates. In percentage terms Ticino (+84%),...

The last days and weeks of the coronavirus epidemic give an interesting insight into the human psyche. Elementary liberties are restricted all over the world, such as the freedom of movement or private property. Yet most people accept these restrictions without blinking, as the state declares their indispensability. A chronology of the events in Madrid: on Sunday, March 8, a large World Women’s Day demonstration against the alleged rule of the Patriachate was held....