Viewing a single comment thread. View all comments

misdirected_asshole t1_iznf97j wrote

Switzerland numbers looking real sus.

39

adebar OP t1_izngdhu wrote

Well, the Swiss Franc appreciated materially against most other currencies (which dampens the impact of inflation), they have the highest share of regulated prices in Europe and a lot of their power is produced from hydropower and nuclear. That all helps.

62

[deleted] t1_iznol2c wrote

[deleted]

−49

luaks1337 t1_iznzb5z wrote

That's not the reason for why their inflation is so low. Switzerland has backed 95% of the Swiss Franc with Gold reserves. When the Swiss Franc inflates they just trade the Gold for their own currency and buy it off of the global markets. The result is a decreased supply of Swiss Francs in foreign markets. Scarce supply means an increase in value therefore counteracting inflation.

I believe the ECB (and most other countries) have backed their currency by less than 10% which makes it much harder to counter steer inflation.

21

[deleted] t1_izo3f3j wrote

[deleted]

−23

luaks1337 t1_izoegst wrote

Listen buddy if you want to discuss whether lock down strategies make sense or not you can do that but in the case of Switzerland the by far most relevant factor is the excellent backing of the Swiss Franc.

18

Zr0w3n00 t1_izo7h8w wrote

Might be the worst piece of geopolitical analysis I’ve ever seen

8

LouSanous t1_izrusnu wrote

China did lockdowns and spent a bunch of money and they don't have inflation either.

2

misdirected_asshole t1_izs83ib wrote

That doesn't explain why they've consistently had lower than average inflation numbers going all the way back to 2013. Covid is only an impact for the last three years of data.

1