- Looks at series of models to gauge Swiss francs value; market has to live with some volatility
- no comment on currency intervention. We don't rule anything out
- monetary policy cannot influence explosion and prices in case of a severe shortage
- the longer inflation last, the greater the risk of a 2nd round of facts having a negative impact
- central banks need to watch out that fiscal policy does not dictate monetary policy
Meanwhile SNB's Maechler is now joining in saying:
- inflation is back and we are reminded of negative power of inflation
- we are seeing the 1st data point where inflation seems to be stabilizing, too early to call trend
- central bankers need to tame inflation ideally without creating a recession
- we live in a world that is very fragile, that is why it is important to move step-by-step
\Inflation