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Book Cover
Author Mauro, Paolo, author

Title Current account surpluses and the interest rate island in Switzerland / prepared by Paolo Mauro
Published [Washington, D.C.] : International Monetary Fund, European I Department, [1995]
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Description 1 online resource (iii, 43 pages) : illustrations
Series IMF working paper ; WP/95/24
IMF working paper ; WP/95/24
Summary Annotation This paper describes some long-run aspects of the Swiss balance of payments, highlighting two macroeconomic phenomena that make Switzerland stand out among other countries: first, it has had a persistent current account surplus and the largest ratio of net foreign assets to GDP in the world; second, its real interest rates have been significantly lower than those of most other industrialized countries, earning it the label interest rate island. These two distinctive features may be related, and ultimately both may result from an excess of national savings over investment for many years. the real interest differential may largely be attributed to a foreign exchange rate risk premium, which compensates Swiss residents for holding net assets in foreign currency and foreign residents for bearing net liabilities in Swiss francs
Bibliography Includes bibliographical references (pages 40-43)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Balance of payments -- Switzerland.
Interest rates -- Switzerland.
Form Electronic book
Author International Monetary Fund. European I Department, issuing body
ISBN 1455225126