Research Catalog

Title

The Significance of Switzerland's Enormous Current-Account Surplus [electronic resource] / Peter Jarrett and Céline Letremy

Author

Jarrett, Peter.

Publication

Paris : OECD Publishing, 2008.

Details

Additional Authors

Letremy, Céline.

Description

23 p.; 21 x 29.7cm.

Summary

Switzerland has had a long-standing surplus on its current account. But over the past 15 years that surplus has surged to levels unmatched by nearly any other OECD country at any point. This paper looks at the surplus from a balance of payments vantage point as well as from the optic of the excess of national saving over domestic investment. It then seeks possible explanations for the uptrend and assesses whether it results to any extent from market, institutional or policy failures that could call for reforms. A number of important measurement issues are raised. But the key recommendation is that the authorities should prepare for a possible sharp increase in the value of the Swiss franc if and when investors engaged in the "carry trade" unwind their positions. To that end they should examine labour, capital and product markets with a view to ensuring they are as flexible as possible and that factors are as mobile as possible, both geographically and sectorally. This will allow any necessary adjustment to a higher exchange rate to be smoothly accommodated. This Working Paper is largely extracted from the 2007 OECD Economic Survey of Switzerland (www.oecd.org/eco/survey/switzerland).

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.594

Uniform Title

OECD Economics Department Working Papers, no.594.

Subject

• Economics
• Switzerland

LCCN

10.1787/244253177344

OCLC

oecd-lib-001890

Author

Jarrett, Peter.

Title

The Significance of Switzerland's Enormous Current-Account Surplus [electronic resource] / Peter Jarrett and Céline Letremy

Imprint

Paris : OECD Publishing, 2008.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.594

OECD Economics Department Working Papers, 1815-1973 ; no.594.

Connect to:

http://dx.doi.org/10.1787/244253177344

Indexed Term

Economics

Switzerland

Added Author

Letremy, Céline.

Other Standard Identifier

10.1787/244253177344 doi