Interest rate dynamics and monetary policy implementation in Switzerland

Puriya Abbassi; Dieter Nautz; Christian J. Offermanns

The maturity of the operational target of monetary policy is a distinguishing feature of the SNB's operational framework of monetary policy. While most central banks use targets for the overnight rate to signal the policy-intended interest rate level, the SNB announces a target range for the three-month Libor. This paper investigates the working and the consequences of the SNB's unique operational framework for the behavior of Swiss money market rates before and during the financial crisis. -- Implementation of Monetary Policy ; Operational Targets of Monetary Policy ; Three-Month Rate Targeting ; Financial Crisis.

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Year of publication:	2009
Authors:	Abbassi, Puriya ; Nautz, Dieter ; Offermanns, Christian J.
Publisher:	Berlin : SFB 649, Economic Risk
Subject:	Zins \| Interest rate \| Geldmarkt \| Money market \| Finanzkrise \| Financial crisis \| Zinspolitik \| Interest rate policy \| Geldpolitisches Ziel \| Monetary target \| Schweiz \| Switzerland