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A single investor of the current account surplus? Benefits and risks of a monopoly supplier of money in Switzerland

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  • Reto Foellmi

Abstract

Studying the currency competition episode in Switzerland of the 19th century, I argue that modern economies need a single supplier of money to pursue stabilization policy. In small open economies with integrated capital markets, the uncertainty about the real exchange poses new risks to monetary policy which were only little discussed in the previous literature.

Suggested Citation

  • Reto Foellmi, 2017. "A single investor of the current account surplus? Benefits and risks of a monopoly supplier of money in Switzerland," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 68(01), pages 109-114, December.
    • Handle: RePEc:usg:auswrt:2017:68:01:109-114
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    References listed on IDEAS

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    1. Robert E. Lucas, 2001. "Inflation and Welfare," International Economic Association Series, in: Axel Leijonhufvud (ed.), Monetary Theory as a Basis for Monetary Policy, chapter 4, pages 96-142, Palgrave Macmillan.
    2. Baltensperger,Ernst & Kugler,Peter, 2017. "Swiss Monetary History since the Early 19th Century," Cambridge Books, Cambridge University Press, number 9781107199309.
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