Tag Archive: current account

Target2 Balances and SNB Currency Reserves. They are Both the Same Concept

We show that Target2 imbalances and the SNB currency reserves represent the same issues, namely current account surpluses/deficits and capital flight. Therefore it makes sense to compare them, in total and by inhabitant.

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Helicopter Money against Animal Spirits and our Critique

The newest paper by McCulley and Poszar "Helicopter Money: or how I stopped worrying and love fiscal-monetary cooperation" presents fiscal policy and monetary policy along these two criteria

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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained

Potential losses due to money printing are for the Fed: 1.2% of GDP, Bundesbank: 5% of GDP, SNB: 12% of GDP.

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Will Chinese Consumption Growth Drive Oil Prices too High for U.S. Energy Independence or Will Shale Production Costs to be Too High?



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Why the SNB will not Imitate Hong Kong, but Potentially Singapore

The SNB will not be able to realize a fixed currency peg over the long-term. The consequence would be that Switzerland loses its competitive advantage, lower Swiss rates, if it follow euro inflation.

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The World in Balance Sheet Recession, a 2012 update



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The Swiss Trade Surplus Unveiled



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

Similarly as European leaders knew what they were doing with the euro, namely introducing a not feasible currency, Swiss National Bank did between 2005 and 2008, namely the absolutely wrong thing.

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German Economists and Merkel, the Implicit Followers of the Gold Standard

With ECB's OMT & "conditionality", that requires austerity and implicitly reduction of salaries in European periphery, Merkel & German economists have created consequences similar to a gold-standard.

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