Our current forecast assumes, for instance, that there will be gradual increases in the repo rate over the coming period. This new assumption does not in itself have any significance for the policy conducted. However, it makes it easier to evaluate our forecasts as they become more realistic and it is easier to compare them with others’ forecasts. It is also important to know this assessment to understand our communication. If the forecast shows inflation as being lower than two per cent a couple of years ahead, this is no longer a reason to cut the repo rate. It may instead mean that there is reason to raise the interest rate at a slightly slower pace than the market is expecting. A further step in our method of making forecasts could be to make our own forecasts for interest rates, instead of using market expectations as a basis. This would require a number of changes in working methods, both for those making forecasts and for us Executive Board members. Personally, I think this would be a natural progression and it is a possibility we are considering. It is not only the inflation forecasts we examine when formulating monetary policy and considering how to set the interest rate in future. Our policy is flexible in the sense that we also look at how the economy as a whole is developing. We have the ambition, within the framework of our price stability task, of also contributing to stable development in production and employment. How do we do this?
Thomas Jordan: The Swiss franc – a success story Address by Mr Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank, at the launch of the book Der Schweizer Franken – eine Erfolgsgeschichte (The Swiss franc – a success story), Zurich, 3 October 2012. *  *  *  Ladies and Gentlemen, allow me to begin by welcoming you all to the launch of the book Der Schweizer Franken – eine Erfolgsgeschichte. Since this book was commissioned by the Swiss National Bank, I would like to take this opportunity to say a few words as to how it came about. After I have finished, first Hans-Peter Thür, publishing director of NZZ Libro, and then Professor Baltensperger, the book’s author, will speak to you. After their comments, and before we close this event with a standing lunch, you will have the opportunity to ask questions. The German theologist, Hans von Keler, 1 is said to have commented “History is more than what has already happened; it is the layers of the past beneath our feet, the ground on which we lay our foundations”, and it seems to me to be particularly fitting for today’s book launch. Institutions do not just fall from the sky – they are created by people. Switzerland’s present monetary and currency institutions have come into being as the result of a gradual process. Professor Baltensperger’s book is an impressive account of the efforts to establish sound institutions over a period of more than 150 years.