Switzerland : Selected Issues

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.
Publication date: June 2003
ISBN: 9781451807257
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Inflation , Inflation , inflation , monetary policy , exchange rate , relative price , average inflation

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