UID:
edocfu_9960178412802883
Format:
1 online resource (41 pages)
ISBN:
1-4983-2220-4
,
1-4983-2223-9
Series Statement:
IMF Staff Country Reports
Content:
This Selected Issues paper on Switzerland models the evolving behavior of the Swiss franc relative to the world’s major reserve currencies and considers possible reasons for the shifts. Economic fundamentals, including country-partners and currency of denomination of Swiss trade and finance, are likely to affect which currencies the franc co-moves with, although these factors tend to change only slowly. The behavior of the Swiss franc may have also been affected by the global financial crisis and its aftermath, as well as the shift in recent years from synchronized to divergent monetary policies by the major central banks. Identifying reserve currency blocks and the de facto behavior of currencies is an ongoing pursuit. The two dimensions of exchange regimes—the anchor currency (basket) and the degree of exchange rate flexibility—should be identified simultaneously. The implied regimes align well with Switzerland’s de facto exchange rate arrangements and monetary policy frameworks. The approach used in this paper identifies how the franc co-moves with the major reserve currencies but is agnostic about the driving forces behind these moves.
Note:
Cover -- CONTENTS -- THE SWISS FRANC-LIVING IN A MULTIPOLAR WORLD -- A. Introduction -- B. Related Literature -- C. Estimating the De Facto Swiss Franc Currency Regime -- D. Interpretation and Implications -- TABLE -- 1. Swiss Franc Exchange Regime Estimation Results -- References -- SWITZERLAND'S INTERNATIONAL RESERVES -- A. Reserve Accumulation -- B. Some Additional Motives for Holding Reserves -- C. Reserve Management and Asset Allocation -- D. Reserve Coverage, Gross International Liabilities, and SNB Capital, Income and Distribution -- References -- SWITZERLAND: CROSS-BORDER WAGE GAPS-POSSIBLE DRIVERS -- A. Drivers of Swiss Wages-Stylized Facts -- B. Are Swiss Wages in Line with Swiss Fundamentals? -- C. What Explains the Dynamics of Cross Border Wage Gaps? -- D. Conclusions -- FIGURE -- 1. Swiss Wages in the International and Regional Context, 1991-2017 -- TABLES -- 1. Estimates of Wage Phillips Curves -- 2. Short-term Drivers of Nominal Wage Gap -- ANNEXES -- I. Cross Border and Posted Workers -- II. Cointegration Tests -- References -- FISCAL FEDERALISM IN SWITZERLAND -- A. The Fiscal Role of Cantons -- B. Inter-Governmental Fiscal Transfers -- FIGURES -- 1. Expenditure and Tax Decentralization in OECD Countries, 2016 -- 2. Public Debt by Government Level -- 3. Cantonal Debt (Maastricht Definition), 2016 -- 4. Resource Equalization, 2018 -- TABLE -- 1. Task Allocation Across Levels of Government.
Additional Edition:
ISBN 1-4983-2150-X
Language:
English
