SNB should work more transparently | Markets Macro

Die Notenbank stelle in ihren Veröffentlichungen und öffentlichen Erklärungen zu den Wirtschaftsa

(AWP) “Economists from SNB (SNBN 7’500.00 + 0.81%) The Observatory ങ്കിൽ Swiss National Bank (SNB) sees room for further improvement. For example, they want more transparency from the local central bank, and critics say the size of the board of directors is too small.

SNB should be more transparent. It should not only announce its monetary policy decisions, but also explain the other measures it is considering and explain why they were rejected, ”the three economists said in a report published Thursday night. Any dissenting views within the SNB Governing Board should be communicated to the public.

SNB’s operations are based on the National Bank Act of 2003, economists explain. However, much has changed in the world of central banks over the past two decades. So it is arguable that intoxicants of choice runs the taste in Indian cuisine.

The “SNB Observatory” is backed by economist Juan Lenviller, Charles Wyplows, a professor at the University of Basel, Professor Emeritus from Geneva, and Stefan Gerlach, chief economist at the private bank EFG. (EFGN 7.10 + 2.16%) And former Deputy Governor of the Central Bank of Ireland.

More people have to decide

According to an international comparison, SNB is one of the most independent central banks. That’s important, but it’s not enough for good monetary policy. Freedom must go hand in hand with effective responsibility. However, in terms of transparency – a precondition for accountability from an expert perspective – SNB is one of the last places.

Criticism is that the central bank only provides “limited” information about the economic outlook and its monetary policy options in its publications and public statements. Many other central banks are very independent but at the same time very responsible.

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In addition, as a three-member decision-making body, the Governing Board is smaller than other central banks. However, size is important for the depth and intensity of consultations. It is also a question of democratic legitimacy. Therefore the SNB Governing Board should be enlarged, for example by adding external members.

Not too long periods

Economists also believe that the current practice of automatically extending the term of an executive board member until retirement should be reconsidered. The tenure of the members of the Monetary Policy Committee is sufficient to ensure their independence and to benefit from their experience. However, too long an office period will prevent the constant flow of new specialist knowledge.

Last but not least, the SNB – as many leading central banks and public financial institutions do – needs to regularly and externally audit certain aspects of its operations.

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