Inflation in Switzerland

In a nutshell

• Accommodative monetary policy has failed to weaken the Swiss franc considerably and prevent deflation.
• Negative interest rates following the 2008 great financial crisis have lowered the value of pensions.
• A minor correction is likely and will correct inflated asset prices.

Introduction

Switzerland, a prosperous nation of 9 million people has experienced weak inflation for over a decade, while monetary policy has eroded consumer purchasing power and clouded the economic…