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Jordan 1999 paper: Why Switzerland should never peg to the Euro

In 1999 Thomas Jordan wrote why Switzerland should never peg to the euro. The main reason was that interest rates and borrowing rates would go up and would eliminate the competitive advantage of Swiss firms. The text is in German.

(if the file does not show up in the PDF viewer, here the direct link)


Our core thesis is in line with Jordan’s 1999 view:


In the following post we explain that the Swiss financing of the European bubbles  and the artificially weak franc until 2008 were the reasons why Jordan had to change his mind:

Because They Knew What They Were Doing: The Parallels between European and SNB Leaders



Thomas Jordan
Thomas J. Jordan (born 1963) is a Swiss economist and banking supervisor. He is the chairman of the governing board of the Swiss National Bank, a member of the board of directors of the Bank for International Settlements, and a member of the steering committee of the Financial Stability Board. For The Guardian and many FX traders, Thomas Jordan is ‘the most hated man in foreign exchange’
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