NZZ, March 13, 2019. PDF. Updated: Ökonomenstimme, March 22, 2019. HTML.
- Long-term real interest rates do not reflect monetary policy.
- In the recent past, monetary policy has contributed to lower fixed-income interest rates but also to higher returns on other asset classes.
- Complaining about low rates but not adjusting one’s portfolio makes little sense; there is no “financial repression.”
- If politicians want to subsidize pension funds they should contribute funds from the government budget rather than asking the central bank to contribute.
- Larger and earlier SNB dividend payouts to the government may not be in the government’s interest.