speech 23 september 2022, 6. 00 pm safeguarding the principles of regulatory policy speech at the university of lucerne thomas j. jordan chairman of the governing board * swiss national bank lucerne, 23 september 2022 © swiss national bank ( speech given in german ) * the speaker would like to thank christoph hirter and tanja zehnder for their support in preparing this speech. he also thanks claudia aebersold, petra gerlach, carlos lenz, alexander perruchoud and the snb language services. page 1 / 5 ladies and gentlemen today ’ s event focuses on the question ‘ is monetary policy still regulatory policy today? ’. i congratulate the university of lucerne on choosing this important topic. discussions surrounding regulatory policy have faded somewhat into the background of late. for the swiss national bank, however, the principles of regulatory policy – in particular those concerning monetary policy – remain of great significance. i am pleased to give you our view on this topic. in my remarks, i will therefore pay special attention to switzerland and the snb. first, i will look at why, for the snb, the two regulatory principles of a clear focus on ensuring price stability and independence from politics are closely related. i will then show why these principles are contradicted by a number of recently launched political initiatives. to conclude, i would like to explain the snb ’ s current monetary policy. narrow mandate and independence as foundation in general, regulatory policy comprises all measures which a government puts in place to create appropriate framework conditions for the longer - term development of the economy. if, in doing so, the government follows sensible principles, it creates conditions in which the economy can optimally develop its potential and the prosperity of the population increases over time. an essential component of good framework conditions, and of good regulatory policy, is price stability. in the absence of price stability, the smooth functioning of an economy is inconceivable. inflation as well as deflation hinder the steering role of prices in ensuring that labour and capital are used as productively as possible. inflation also reduces household purchasing power and especially impacts the more vulnerable sections of society. in order to ensure price stability in the long term, two principles of regulatory policy are key : - first, price stability must be the fundamental guiding principle of monetary policy - and second, a central bank must be independent from politics. both of these principles are today reflected in the legislation of many countries. in switzerland,

bojan markovic : macroeconomic developments in serbia speech by mr bojan markovic, vice governor of the national bank of serbia, at the presentation of the november 2011 inflation report, belgrade, 16 november 2011. * * * ladies and gentlemen, esteemed members of the press and fellow economists, despite repeated media announcements about the “ waves of price hikes ”, inflation continued down over the past several months and settled at 8. 7 % in october. we expect this downward trend to persist and inflation to retreat within the target tolerance band in the first quarter of 2012. at the same time, pessimism over global growth prospects intensified, particularly in the euro area prompting us to revise the economic growth forecast for serbia down to around 2. 0 % in 2011 and 1. 5 % in 2012. in response to subsiding inflationary pressures, the national bank of serbia cut the key policy rate during the last six months. the key policy rate currently stands at 10 %, and its further cautious lowering is likely in the coming period. chart 1 inflation projection ( y - o - y rates, in % ) chart 2 gdp growth projection ( y - o - y rates, in % ) - 2 - 4 12 3 12 3 12 3 12 3 iii iv i ii iii iv i ii iii iv i ii iii iv i ii iv today we will present in more detail our view of past macroeconomic developments and our expectations for the period ahead. * * * mounting doubts about the sustainability of public debt in advanced economies and unfavourable growth indicators for the second and third quarters have led to a downward revision of the global economy growth forecasts, particularly that of the euro area. the third quarter witnessed a drop in share prices and a rise in interest rates on public debt in a number of countries. the prices of primary commodities, such as oil, base metals and agricultural products, also declined in the third quarter. though financial markets showed some recovery in october, global economic growth will no doubt be slower than expected until recently. also, the governments might not be able to respond with fiscal stimuli as they did during the first wave of the crisis, primarily due to high public debt. turbulences in the global financial market led to an increase in serbia ’ s risk premium ( measured by embi ), albeit smaller than those of other countries in the region. as a result, the dinar was more stable during this period than the currencies of other east european countries with flexible