Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/178676
Authors: 
Buchholz, Manuel
von Schweinitz, Gregor
Tonzer, Lena
Year of Publication: 
2018
Series/Report no.: 
IWH Discussion Papers 9/2018
Abstract: 
The Swiss National Bank abolished the exchange rate floor versus the Euro in January 2015. Based on a synthetic matching framework, we analyse the impact of this unexpected (and therefore exogenous) shock on the stock market. The results reveal a significant level shift (decline) in asset prices in Switzerland following the discontinuation of the minimum exchange rate. While adjustments in stock market returns were most pronounced directly after the news announcement, the variance was elevated for some weeks, indicating signs of increased uncertainty and potentially negative consequences for the real economy.
Subjects: 
exchange rate shock
stock markets
uncertainty
synthetic matching
JEL: 
C22
E50
F30
F41
Document Type: 
Working Paper

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