Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/233649
Authors: 
von Schweinitz, Gregor
Tonzer, Lena
Buchholz, Manuel
Year of Publication: 
2020
Citation: 
[Journal:] International Review of Finance [ISSN:] 1468-2443 [Volume:] [Issue:] Early View Articles
Publisher: 
John Wiley & Sons Australia, Ltd, Melbourne
Abstract: 
The Swiss National Bank abolished the exchange rate floor versus the Euro in January 2015. Using a synthetic matching framework, we analyze the impact of this unexpected (and therefore exogenous) policy change on the stock market. The results reveal a significant level shift (decline) in asset prices following the discontinuation of the minimum exchange rate. As a novel finding in the literature, we document that the exchange‐rate elasticity of Swiss asset prices is around −0.75. Differentiating between sectors of the Swiss economy, we find that the industrial, financial and consumer goods sectors are most strongly affected by the abolition of the minimum exchange rate.
Subjects: 
exchange rates
stock markets
synthetic matching
uncertainty
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/4.0/
Document Type: 
Article
Document Version: 
Published Version

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