Switzerland Is A Federalist State, Where The Power Is Divided

1467 Words6 Pages
Switzerland is a federalist state, where the power is divided between the three levels: the Confederation, the cantons, and the communes. The way Switzerland handles matters is through the principle of subsidiarity, where a smaller branch of the government can handle issues and solve them, instead of having the more powerful branch of government handle those issues. In Switzerland, the people hold the most power, which allows the people to vote on the country’s issues and voice their opinions to each of the individual parts of the political systems. The confederation, the highest of the three political systems, handles duties relating to foreign and security policy, customs and monetary policy, national legislation, and defence. The…show more content…
They both have central bank independence. The Swiss National Bank can affect money supply through open market operations where they auction repo transactions by volume tender or by variable rate tender. The Swiss National Bank can influence the money market interest rate in Switzerland by changing the interest rate conditions and the price formation in Switzerland 's money market by making offers in the electronic market. This can help stabilize money market rates in the short term (Monetary Policy Instruments).
The Swiss National Bank (SNB) is maintaining its expansionary monetary policy. Interest on sight deposits at the SNB is to remain at –0.75%. The Swiss National Bank will remain active in the foreign exchange market as necessary. The SNB’s expansionary monetary policy is aimed at stabilizing price developments and supporting economic activity. The Swiss franc continues to be significantly overvalued. The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive, thereby easing pressure on the currency. The negative interest rate is suppose to induce investors to not buy investments so the Swiss currency stabilizes (Monetary Policy Assessment of 16 March 2017).

Depicted on the previous page is the money supply for M1 in Switzerland includes
Show More
Related

  • America 's Form Of Government

    1364 Words  | 6 Pages

    money to “buy” the elections, rather than the will of the population. Income inequality is still increasing, the middle class is vanishing, and the crazy Republican Party continue to do everything in their power to block raising the minimum wage for what makes the majority of the United States; the hard working Americans. So far, women still don 't make equal pay for equal work, and CEOs make absurd remuneration, while workers are sadly forced for greater productivity and for far less money. Rich

    Read More

  • Exploring Corporate Strategy - Case

    164366 Words  | 658 Pages

    ECS8C_C01.qxd 22/10/2007 11:54 Page 597 CASE STUDIES ECS8C_C01.qxd 22/10/2007 11:54 Page 598 ECS8C_C01.qxd 22/10/2007 11:54 Page 599 Guide to using the case studies The main text of this book includes 87 short illustrations and 15 case examples which have been chosen to enlarge specific issues in the text and/or provide practical examples of how business and public sector organisations are managing strategic issues. The case studies which follow allow the

    Read More

More about Switzerland Is A Federalist State, Where The Power Is Divided

Open Document