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Old 16.01.2015, 17:51
Urs Max Urs Max is offline
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Re: Aftermath of SNB EUR Peg Discontinuation - Would you be happy to take a 20% pay c

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Fuel, imported goods, food costs, exporters will become less competitive, international companies can not justify the cost of the Swiss labour costs anymore, soon local businesses can not pay the salaries of their employees and then they ask them the question...
That sounds very logical.

However, checking with the past I can't help but notice that CH booked a new record trade surplus every year since 2004 except 2010, when the balance was 5% below 2009.

I find it especially difficult to make sense of the record in 2011, which was about 20% above the previous one, based on the claim that the exchange rate is basically the sole deciding factor, as the Euro had been below 1.30CHF (i.e. down by 20% and more from previous year) basically all year.

The trade balance surplus didn't increase much afterwards, but increase it did, so even 1.20 obviously wasn't bad at all for the exporters. This makes the outrage from people such as Hayek look rather dubious (..fool me twice..).
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