Gianluca Benigno has an interesting angle on SNB policy: the Swiss central bank is attempting to rebalance the sources of inflation between domestic and foreign.
I wonder if there's a political economy dimension to this. For a given "headline" inflation rate, higher imported inflation is essentially a transfer of income abroad; higher domestic inflation, to the extent that it is the result of higher rental inflation, is a domestic redistribution of income to property owners.
Good deep dive into the murky world of central banks.
Gianluca Benigno has an interesting angle on SNB policy: the Swiss central bank is attempting to rebalance the sources of inflation between domestic and foreign.
I wonder if there's a political economy dimension to this. For a given "headline" inflation rate, higher imported inflation is essentially a transfer of income abroad; higher domestic inflation, to the extent that it is the result of higher rental inflation, is a domestic redistribution of income to property owners.