economic outlook, volume 2016, issue 2. ricardo, david ( 1817 ), on the principles of political economy and taxation, london : john murray. sachs, jeffrey and andrew warner ( 1995 ), economic reform and the process of global integration, brookings papers on economic activity, 1995 ( 1 ), pp. 1 – 118. world trade organization ( 2017 ), world trade report. page 9 / 9 protectionism complicates monetary policy thomas j. jordan chairman of the governing board swiss national bank volkswirtschaftliche gesellschaft des kantons bern berne, 31 october 2018 chart 1 31. 10. 2018 volkswirtschaftliche gesellschaft des kantons bern | thomas j. jordan | © swiss national bank chart 2 31. 10. 2018 volkswirtschaftliche gesellschaft des kantons bern | thomas j. jordan | © swiss national bank chart 3 31. 10. 2018 volkswirtschaftliche gesellschaft des kantons bern | thomas j. jordan | © swiss national bank chart 4 31. 10. 2018 volkswirtschaftliche gesellschaft des kantons bern | thomas j. jordan | © swiss national bank chart 5 greater uncertainty / appreciation of the chf 31. 10. 2018 volkswirtschaftliche gesellschaft des kantons bern | thomas j. jordan | © swiss national bank chart 6 31. 10. 2018 volkswirtschaftliche gesellschaft des kantons bern | thomas j. jordan | © swiss national bank

speech embargo 31 october 2018, 6. 15 pm protectionism complicates monetary policy volkswirtschaftliche gesellschaft des kantons bern thomas j. jordan chairman of the governing board ∗ swiss national bank berne, 31 october 2018 © swiss national bank, zurich, 2018 ( speech given in german ) ∗ the speaker would like to thank claudia aebersold szalay and alexander perruchoud for their support in drafting this speech. he also thanks simone auer and carlos lenz as well as snb language services. page 1 / 9 ladies and gentlemen switzerland owes much of the prosperity it enjoys today to open markets and thriving trade with many countries across the globe. in recent decades, free trade in goods and services, coupled with advancing technological progress, has delivered growth and prosperity, not just in switzerland but in many other parts of the world, too. recognising the advantages of international trade, most countries remained true to the principles of free trade even amid the outbreak of the financial crisis almost exactly ten years ago. they resisted the temptation of knee - jerk isolationist responses and refrained from sweeping protectionist measures. the onus was on not repeating the mistakes made in the great depression of the 1930s, when such interventions served only to accelerate the economic decline rather than bringing the hoped - for respite. as we now know, and as chart 1 clearly shows, the consequences were disastrous. recovery from the great depression was painfully slow, whereas world trade returned relatively quickly to its previous levels following the most recent crisis. holding firm during the financial crisis has paid off. the economic recovery may have taken some time in many areas, but the global economy is now back in fairly good shape. but it is at this very moment, when a lot of countries are able to post respectable economic growth, that protectionism appears to be rearing its head again. trade disputes between several countries are jeopardising the global upturn. burgeoning protectionism also entails considerable challenges for central banks – and thus for the swiss national bank ( snb ), too – as it brings with it the threat of negative consequences for monetary policy. free trade as a scapegoat before i come to the actual subject of my speech, namely the relationship between protectionism and monetary policy, i would like, if i may, to take a step back for a moment and look at where the calls for protectionism stem from. numerous academic and empirical studies 1 have