Swiss risk losses in the billions

Coupling the franc to the euro would entail major monetary policy disadvantages, the liberal daily Corriere del Ticino warns: "The proposal to couple the franc to the euro or set an upper limit for the exchange rate would be an attempt to prevent the euro from falling below 1,40 francs. This has already been tried in the past. The purchase of more than 100 billion euros back then was not enough to weaken the franc and led to losses in the billions. Repeating this approach now would probably lead to the same result. Because the purchased euros would be used to buy European state bonds this would effectively turn the Swiss National Bank into a second European bailout fund."

» more information (external link, Italian)
More from the press review on the subject » Fiscal Policy, » Banks, » Switzerland
All available articles from » Alfonso Tuor

» To the complete press review of Friday, August 12, 2011