Thursday, May 15, 2014

Swiss deflation

While the Eurozone is concerned about disinflationary pressures, Switzerland is dealing with outright deflation. Persistently strong Swiss franc and weak economic growth in the euro area are putting downward pressure on prices.

Switzerland PPI (source:

Some are suggesting that the Swiss National Bank follow the ECB's lead in (potentially) loosening monetary policy via "unconventional" tools. Otherwise it will become increasingly difficult to arrest these falling prices.
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