Franc Switzerland
Tags: currency, economy, franc, franc switzerland, franc switzerland to dollar, franc switzerland to usd, swiss, switzerland, switzerland gold franc, us dollar switzerland franc
Interest rate parity and Germany and Switzerland…?
For decades, interest rate in Switzerland have been
lower (by 1-2%) than in Germany while the exchange
rate between the Swiss franc and the Deutschmark first
and now the euro has changed little. What does this
mean for the interest rate parity? How could you explain
this phenomenon?
The Swiss Franc has some similarites to gold. People flee to it in times of crisis.
There is no need for the Swiss Central Bank to impose high interest rates, because it is always in demand.
Swiss exporters hurt by rise in … Continue Reading
