Fight against inflation should be a priority, says Swiss Bankers Association

The Swiss government should keep a check on inflation as its top economic priority, said the Swiss Bankers Association. That was one of the points contained in a working paper put forward by the Association in Berne on Friday.

The Swiss government should keep a check on inflation as its top economic priority, said the Swiss Bankers Association. That was one of the points contained in a working paper put forward by the Association in Berne on Friday.

The Association said using monetary policy to create jobs and promote growth was not a desirable solution, as the long-term benefits would be questionable.

It emphasised tackling structural problems resulting from high taxes, inflexibility in the job market, irrelevant or inadequate qualifications among the workforce and a lack of a competitive range of goods and services.

The key to solving the problems on the jobs market would include the integration of “a continuous process of further education in parallel to one’s employment”, said the Association.

The working paper described as less desirable an expansive fiscal policy. A high budget deficit would only spark fears amongst the public of a likely rise in taxes. This in turn would most heavily influence household consumption.

Addressing the issue of taxation, the working paper recommended that consumption rather than income should be taxed. This would promote the accumulation of capital which in turn could boost economic growth, said the Association.

The range of social benefits on offer cannot be expanded without endangering economic growth, according to the working paper. Priorities today should include a search for new forms of private insurance.


Source: sda-ats