IMF Staff Country Reports

Switzerland: Selected Issues

Publication Date:

June 2, 2003

Electronic Access:

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Summary:

This Selected Issues paper takes a close look at the proximate determinants and short-term dynamics of inflation in Switzerland. It identifies salient features of the inflation experience in Switzerland. The paper uses a wage-price model to gauge the sensitivity of inflation to the business cycle and the exchange rate. The findings suggest that underlying inflation of about 1 percent reflects a slightly higher rate for domestic goods and services and low increases in prices of imported goods.

Series:

Country Report No. 2003/149

Subject:

Exchange rates Financial services Foreign exchange Inflation Output gap Price stabilization Prices Production Short term interest rates