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Swiss Central Bank Urged to Lift Inflation Goal, Manage Currency

(Bloomberg) The Swiss National Bank should raise its inflation target and consider using its exchange rate rather than its benchmark interest rate as its main tool, according to a group of economists. While the proposal on price growth would bring the SNB more in line with international counterparts, the suggestion on how to manage the franc would be more controversial. Switzerland is already designated as a currency manipulator by the U.S. Stefan Gerlach, former deputy governor of the Irish central bank now at EFG International AG, Yvan Lengwiler of the University of Basel and Charles Wyplosz, honorary professor at Geneva’s Graduate Institute addressed the issue of persistently weak price growth in Switzerland, despite negative interest rates since 2015. “A revision of the strategy is needed now,” they wrote in a paper published Wednesday. “We recommend that the SNB should commit to a more precise and slightly higher inflation goal, and it should clarify the role of the exch ....

Stefan Gerlach , Charles Wyplosz , Yvan Lengwiler , Geneva Graduate Institute , European Central Bank , Swiss National Bank , University Of Basel , Graduate Institute , Business General , ஸ்டீபன் ஜெர்லாச் , ஜிநீவ பட்டதாரி நிறுவனம் , ஐரோப்பிய மைய வங்கி , சுவிஸ் தேசிய வங்கி , பல்கலைக்கழகம் ஆஃப் பேசல் , பட்டதாரி நிறுவனம் , வணிக ஜநரல் ,