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OECD Economic Surveys: Switzerland 1992
OECD's annual survey of the Swiss economy. Part I of the survey looks at the forces which have pushed the Swiss economy into recession and which led to a marked deterioration in the labor market. Prospects for a pick-up in economic activity in the near term are then reviewed. Part II analyzes the conduct of monetary policy, which is confronted with inflation that is still high, sluggish economic activity, as well as perceptions that the current period of disinflation is exceptionally long. The issue of alternatives to a base money target as the focus of monetary policy is also briefly addressed. In addition, Part II examines recent trends and medium-term projections in government finances as well as the latest measures suggested by the government to contain budget deficits and the progress towards tax reform. Part III offers an assessment of the intensity of competition in the Swiss domestic market and discusses the problems arising from the current legal framework for competition in goods and factor markets and options for reform. Finally, the main findings of the analysis are summarized and conclusions for economic policy are drawn in Part IV.
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