In five pages the 2001 and 2002 performance of the Swiss franc is examined in a consideration of such topics as central bank reputation, company political stability, economic performance, interest rates, and inflation. Four sources are listed in the bibliography.
Name of Research Paper File: TS14_TEswissf.rtf
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impact on that demand, these will include inflation, interest rates, which are also often associated with inflation, the political stability if a country and the way in which the central
bank is viewed by the external markets. If we look at the Swiss Franc then we can see the realisation of the theory in the way that currency has performed,
especially in relation to the US Dollar. To start with we need to look at the performance of the Swiss Franc between January 2001 and March 2002. During this time,
there is a fluctuation. The rates fluctuate daily, and in table One we see these daily fluctuations, and how over a few days there can be large fluctuations.
Table One; Swiss Franc Nov 2001 - March 2002 (X-rate.com, 2002). However, we are looking for trends in the exchange rate, and therefore we will not use the daily
rates, but the average monthly amounts over the time period to gain a clearer picture of the trends rather than the smaller fluctuations. This is show in Figure 2
Figure Two; Swiss France January 2001 - March 2002 (information extrapolated form X-rate.com, 2002) If we look at the country over this period of time
it appears that inflation was not a problem, however, it did change over time, with the higher periods of inflation matching the lower value periods. The information for the year
was forecast at only 1.4% and for 2002 1.6% this appears to have been the general trend for the year (Anonymous, 2001). However, the underlying rate appears to be heading
for a rate of 1% at the end of the period we are looking at. However, part of the downfall may also