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  • Open Access

Interest rate dynamics and monetary policy implementation in Switzerland

  • Puriya Abbassi,
  • Dieter Nautz and
  • Christian J. Offermanns
Swiss Journal of Economics and Statistics2010146:BF03399310

Published: 11 January 2010


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 PolicyOperational Targets of Monetary PolicyThree-Month Rate TargetingFinancial Crisis