( csef ), university of naples, italy. roland de bruijn, henk kox, arjan lejour ( 2008 ), “ economic benefits of an integrated 9 european market for services ", journal of policy modeling 30, pp 301 – 19. 10 copenhagen economics ( 2010 ), the economic impact of a european digital single market, final report. 11 muge adalet mcgowan and dan andrews ( 2005 ), “ insolvency regimes and productivity growth : a framework for analysis ", oecd working paper ( 2016 ) 33. 12 see, for instance, r martin, t munyan, b a wilson ( 2015 ). potential output and recessions : are we fooling ourselves? board of governors of the federal reserve system international finance discussion papers number 1145. 13 hoffmann, m and sorensen, b ( 2012 ), don ’ t expect too much from ez fiscal union – and complete the unfinished integration of european capital markets, voxeu, 9 november 2012. 6 / 6 bis central bankers'speeches

be emphasised that, on average, the export volume of swiss products has reacted comparatively little to exchange rate movements. the qualification on average is an important one. in fact, the dependence on exchange rate movements of the two largest sectors in terms of export share ( chemicals, including pharmaceutical products, and precision instruments and watches ) is distinctly below average. thus, these sectors ’ share of total exports has gone up over time. by contrast, the adjustments some companies and industries have made to the strong franc have been – and still are – so far - reaching that they are having to completely rethink their future in switzerland. third, i am aware that it is easy for an outside observer to talk about the advantages of a strong currency. at the same time, the snb ’ s various direct contacts with companies allow us to gain concrete insights into current problems. during the last six months, my colleagues from the governing board and i have held frequent meetings with representatives of the business community ; these discussions were very heated. it is therefore clear to me that adjustments to a strong currency do not happen just like that. on the contrary. adjustment processes as a result of appreciation shocks are always very painful. underlying these processes is a great willingness to take risks on the part of companies and investors, and a high level of commitment and flexibility from employees. in addition, our eight delegates for regional economic relations are constantly in touch with companies from different industries throughout switzerland. the results of the special survey on the effects of swiss franc appreciation conducted in the last two quarters show that a large portion ( 70 % ) of the companies surveyed are being negatively affected by swiss franc appreciation. many companies ’ margins have come under pressure. however, the surveys also illustrate how quickly – and differently – companies have reacted to the challenges. the fact that our most current survey suggests a slightly improved economic outlook is encouraging. economic developments abroad are even more crucial for swiss exports than the exchange rate. the importance of global economic trends for our country can be clearly seen in chart 2. it shows that downturns in world trade and dips in growth in switzerland occur almost concurrently. but the characteristics of demand from abroad differ in important ways. internal snb studies have shown that short - term changes in demand from neighbouring countries have an especially strong effect on exports ; in the case of demand from emerging economies, d. fauceglia, a. lassmann, a. shingal and m. wermelinger, backward participation