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  • Open Access

Interest rate dynamics and monetary policy implementation in Switzerland

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Swiss Journal of Economics and Statistics2010146:BF03399310

  • Published:


The maturity of the operational target of monetary policy is a distinguishing feature of the SNB’s operational framework of monetary policy. While most central banks use targets for the overnight rate to signal the policy-intended interest rate level, the SNB announces a target range for the three-month Libor. This paper investigates the working and the consequences of the SNB’s unique operational framework for the behavior of Swiss money market rates before and during the financial crisis.


  • Implementation of Monetary Policy
  • Operational Targets of Monetary Policy
  • Three-Month Rate Targeting
  • Financial Crisis