http://blogs.reuters.com/great-debate-uk/2011/04/01/would-the-euro-solve-switzerland%e2%80%99s-problems/ Thu, 23 May 2013 11:09:22 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/great-debate-uk/2011/04/01/would-the-euro-solve-switzerland%e2%80%99s-problems/comment-page-1/#comment-15672 max46 Fri, 01 Apr 2011 21:50:26 +0000 http://blogs.reuters.com/great-debate-uk/?p=9558#comment-15672 Sounds like the right question at the wrong time. While pegging one's currency to another may work beautifully in some cases (e.g. Panama's Balboa to the US Dollar), it carries also major inconveniences. If the financial community does not believe that the set peg is right, it will continuously challenge the central bank to intervene. For Switzerland, in my opinion, only strict exchange controls and punitive taxes on speculative positions could solve the problem that has been haunting our export and tourism industry for the past three years. Sounds like the right question at the wrong time. While pegging one’s currency to another may work beautifully in some cases (e.g. Panama’s Balboa to the US Dollar), it carries also major inconveniences. If the financial community does not believe that the set peg is right, it will continuously challenge the central bank to intervene. For Switzerland, in my opinion, only strict exchange controls and punitive taxes on speculative positions could solve the problem that has been haunting our export and tourism industry for the past three years.

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