Swiss Journal of Economics and Statistics

, Volume 146, Issue 1, pp 185–208 | Cite as

Unemployment and monetary policy in Switzerland

Open Access


This paper investigates the impact of the monetary policy change of the Swiss National Bank (SNB) in 1999 on the Swiss labor market on the basis of a Phillips relationship. Theoretical considerations as well as previous empirical work suggest that the SNB’s shift to a more inflation-targeted policy should have increased real-wage flexibility and lowered the NAIRU, the sacrifice ratio, and the level and persistence of inflation in Switzerland. Our results tend to confirm these expectations, although a number of the measured effects are not statistically significant.


inflation targeting NAIRU Phillips curve 


E24 E31 E50 


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Copyright information

© Swiss Society of Economics and Statistics 2010

Authors and Affiliations

  1. 1.Department of Economics, FAIUniversity of BaselBaselSwitzerland

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