SNB’s Danthine: Credit – is the sky the limit?

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the elevated property prices and the evidence of high risk appetite translate for the Swiss economy into a state of high vulnerability requiring caution and the exercise of responsibility by all concerned. The activation of the CCB and the adoption of other prudential measures have to be seen in this perspective.

References

Borio, C. (2012): The financial cycle and macroeconomics: What have we learnt?
BIS Working Paper No 395

Keynes, J. M. (1936): The General Theory of Employment, Interest and Money, London, Macmillan; Chapter 12

Minsky, H. P. (1982): Can “it” happen again?, Essays on instability and finance, New York 1982

Reinhart, C. and Rogoff, K. (2009): This time is different: Eight Centuries of Financial Folly, Princeton University Press

Schularick M., and Taylor, A. (2012): Credit Booms Gone Bust: Monetary Policy, Leverage Cycles, and Financial Crises, 1870–2008, American Economic Review, American Economic Association, Vol. 102(2), pp. 1029–61

Stiglitz, J. and Weiss, A. (1981): Credit Rationing in Markets with Imperfect Information, The American Economic Review, Vol. 71, No. 3, pp. 393–410.

George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
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