The Corona-consequences of the crisis – the independence of The Swiss Central Bank’s instrument in the debate politicians are calling for more use of SNB in the management of the crisis. In addition, the Management of the huge currency reserves provides for discussions. Markus Diem Meier8 Kommentare8Verteidigt iron its independence: SNB President Thomas Jordan.Photo: Gaëtan Bally (Keystone)

On Thursday, the Swiss national Bank (SNB), as every month is known, how it wants to shape its monetary policy and how it evaluates the economic situation. The Presidium of the Central Bank, Thomas Jordan, is not likely to come around, to the many requests that are currently being worn to the Institute approach.

stand in Parliament and claims to the discussion, that the Central Bank should make a greater contribution to overcoming the crisis. Also, Economists have reported, according to the word. The professors, Daniel Kaufmann, Jan Egbert Sturm and Alexander Rathke demand of the SNB’s self-determined contribution for the unemployment insurance. Of Economics Professor Reto Föllmi holds nothing, but he also wants to ask the SNB is stronger for the Treasury: The Central Bank is expected to Finance a higher dividend tax cuts, he proposes.

The debate is also how the SNB accounted for its huge growing foreign exchange investments and investing. Until the end of April, these have reached such a level of approximately 812 billion Swiss francs. On Tuesday, it was tabled in the national Assembly a proposal that the SNB in the case of the investment of its foreign exchange reserves, the sustainability criteria should take into account.

weapons companies in the Porfolio

Unusual: Normally, the Central Bank has in the Federal Council as a reliable ally. But the push for more sustainability, the Federal Council has supported and will now prepare a report.

The SNB has not set their equipment to the exclusion criteria, the published you. From data of the U.S. securities and exchange Commission is, however, evident that it has for the over 100 million dollars as the shares of arms companies like Raytheon or General Dynamics.

in view of the until the end of 2019 to 84 billion Swiss francs increase in distribution of reserves from past profits retained by the SNB has increased to the beginning of the year, your maximum profit distribution to the Confederation and the cantons from 2 to 4 billion Swiss francs. Against higher payments, the national Bank argued that the large fluctuations to which its currency reserves are exposed to changes in the price of currencies and invested assets. This can quickly lead to high losses.

However, for this risk, the SNB has with the currency reserves, a further safety cushion built up, which amounted by the end of 2019 to 73.2 billion Swiss francs. The national Bank has increased the allocation to the currency reserves from the generated profit for the year profit since the financial crisis, massively, since in 2016 it will grow by at least 8 percent annually. The distribution reserve would therefore be significantly greater, would have been the rules for the allocation to the currency reserves since 2009, unchanged. How would you have changed the calculations of the Economists Fabio Canetg by the study center Gerzensee, part of the SNB show.

Protected by law

Solely with respect to the legal situation Thomas Jordan and his management team all the initiatives can be no matter. Constitution and the national Bank act, a guarantee of the national Bank, the independence from any political influence.

But the Bureau is not acting in a vacuum. The mood in the country has for the national Bank’s importance. Already alone, because a law, and even a Constitution can be changed. This also seems to be Thomas Jordan umzutreiben. In a presentation he made recently, how much he is in the course of the Corona-crisis to the independence of the Central bankers are generally worried. The reason is the massive support measures that have started his colleagues in Europe or in the USA to support the economy. Thus, the boundary between monetary policy and the state began shooting budget to zerflie.

so Far there is no proposal to change the legal basis on which the independence of the national Bank is based. But in the politics and Economics of the widespread is the view that the SNB is pushing the boundaries of their independence too far. Virtually all of the initiatives she leads into the field, you would affect in its monetary policy. This applies to explicit investment criteria as well as for higher payouts. With a mantra Insisting on the independence of Jordan & co. are these debates becoming less and less decide for themselves.

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