| Item Type |
Journal paper
|
| Abstract |
We ask whether verbal interventions by the Swiss National Bank (SNB) affected market beliefs in the desired direction during the period from 2011 to 2015, when the SNB imposed a cap on the Swiss franc at 1.20 against the euro. A verbal intervention was a speech by a member of the SNB Governing Board containing the wording “utmost determination” and/or “unlimited quantities”. We show that these verbal interventions lowered forward-looking measures of uncertainty regarding the future value of euro/Swiss franc exchange rate and steered market beliefs toward franc depreciation, therefore reinforcing the credibility of the Swiss franc cap |
| Authors |
Mirkov, Nikola; Pozdeev, Igor & Söderlind, Paul |
| Journal or Publication Title |
Journal of International Money and Finance |
| Language |
English |
| Keywords |
Swiss franc
options
FX liquidity
verbal interventions |
| Subjects |
economics
finance |
| HSG Classification |
contribution to scientific community |
| HSG Profile Area |
SOF - System-wide Risk in the Financial System |
| Refereed |
Yes |
| Date |
2019 |
| Publisher |
Elsevier |
| Number |
93 |
| Page Range |
42-54 |
| ISSN |
0261-5606 |
| Contact Email Address |
paul.soderlind@unisg.ch |
| Depositing User |
Prof. PhD. Paul Söderlind
|
| Date Deposited |
22 Mar 2019 14:02 |
| Last Modified |
20 Jul 2022 17:38 |
| URI: |
https://www.alexandria.unisg.ch/publications/256848 |
Verbal Interventions and Exchange Rate Policies: The Case of Swiss Franc Cap
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