Causes and consequences of long-run currency appreciation: The Swiss case

Kugler, Peter. (2017) Causes and consequences of long-run currency appreciation: The Swiss case. Aussenwirtschaft, 68 (1). pp. 69-86.

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The econometric analysis of a panel of currencies after the transition to flexible exchange rates indicates that the real exchange rate of the Swiss franc against six major currencies is trend stationary and that the elasticity of the nominal exchange rate with respect to the relative price level is close to 1. Moreover, the dollar and pound real exchange rates appear unrelated to the GDP share of the Swiss financial sector over the years 1916-2010. This confirms previous findings for the pound and dollar for a currency panel during the flexible exchange rate period, namely, that the real appreciation of the Swiss franc in the flexible exchange rate period appears to be a “real” phenomenon not related to monetary and financial developments, and it mainly creates a risk for the stock of Swiss net foreign assets.
Faculties and Departments:06 Faculty of Business and Economics
06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Geld- und Währungsgeschichte (Kugler)
UniBasel Contributors:Kugler, Peter
Item Type:Article, refereed
Article Subtype:Research Article
Note:Publication type according to Uni Basel Research Database: Journal article
Last Modified:14 Jun 2018 13:19
Deposited On:14 Jun 2018 13:19

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