The Swiss Vollgeld referendum: Prepare for another Brexit shock?
The Swiss vote on monetary reform on 10 June. A “Yes” to Vollgeld is a low-probability but high-impact event. Ring any Brexit bells?
Executive summary
On 10 June, the Swiss vote on a fundamental monetary reform. The probability of a “yes” may be underestimated, as was the case with the Brexit referendum.
The short-term impact of a “yes” would be great uncertainty but, in the longer term, Vollgeld could hurt the economy, have important redistributive consequences and greatly increase the role of the state in the economy. The CHF will suffer from a “yes” in the short run, but conservative monetary policy and safe haven status may be a CHF positive in the longer run.
In this report, we examine what Vollgeld is and why it's so important. We suggest this is a fundamental reform with wide-ranging consequences, many of which haven't been thoroughly though through.
Download
Download report
25 May 2018
In Case You Missed It: Why June’s the month to watch This bundle contains 8 articlesThis publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more