Tag Archives: Swiss Franc

After the strong revaluation of the Swiss franc in recent years, some economists, like the ones at the Swiss National Bank (SNB), claim that the franc is overvalued. Many use misleading Purchasing Power Parity (PPP) measures like the Big Mac index, the OECD index or the PPP based on consumer prices for computing fair values. The second big mistake is to compute the Real Effective Exchange Rate (REER) with the wrong “base year”, i.e. to assume that in 1999 the CHF was correctly valued. The...

Newest Updates: Overview: Articles on the drivers of the CHF Exchange Rate: An article written in February 2012 that summarizes many of those points in an earlier version: It predicted that the euro would not rise against CHF and that the commodity currencies were overvalued and subject to correction. Will the EUR/CHF never rise over 1.22 or 1.23 again? On CHF Valuation: On money and real money: History and Background:   Technicals and data: The curator is: George Dorgan...