To illustrate this point, I want to focus on three key markets for the SNB that have experienced major changes: the goods and services market, where digitalisation may be influencing pricing and where we, in turn, must remain alert if we are to fully grasp the associated dynamics; the foreign exchange market, where the emergence of new technologies and players has led us to expand our in-house capabilities and redouble our efforts to stay at the cutting edge of technological progress (Thomas Moser, Deputy Head of Department III since 1 September, will give you more detail on this topic); and finally, the money market, where structural changes are prompting us to work on modernising infrastructure and maintaining appropriate framework conditions in order to ensure effective implementation of monetary policy. Evolution of the goods and services market and weak inflation So let me start with the goods and services market and inflation developments. This market is presenting central banks with an important conundrum: why, given that the economy has firmed significantly since 2017, has inflation remained low in most advanced economies? Page 2/9  Two major reasons stand out: on the one hand, monetary policy geared to price stability has firmly anchored inflation expectations; on the other, various structural factors linked to globalisation may have had a moderating effect on prices.
After the crisis, inflation in Switzerland remained subdued due to low oil prices and strong appreciation of the CHF  1  08.11.2018 Ten years after the crisis: evolving markets and the challenges for the SNB | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  The SNB monitors the microstructure of the market in real time using high-frequency data EURCHF exchange rate and order book on 8 February 2018 High  High  Tick time 2  08.11.2018 Ten years after the crisis: evolving markets and the challenges for the SNB | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Source: SNB. Low  1.160  1.158  1.158  1.156  1.156  1.154  1.154  1.150  1.148  1.152  1.150  1.148  1.146  1.144  1.144  12:00  15:00  18:00  1.142 09:00  12:00  15:00  EURCHF (rhs) 8 February 2018: turnover (left chart); bid-ask spread (right chart) Since February 2017: turnover (left chart); bid-ask spread (right chart)  08.11.2018 Ten years after the crisis: evolving markets and the challenges for the SNB | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  18:00 Source: SNB. Low  Low  1.146  1.142 09:00  3  EURCHF  1.152  Turnover  High  1.160  bid-ask spread  High  Unusually high trading activity for the EURCHF pair between 17:00 and 17:30, but robust liquidity conditions  Sources: Bloomberg, JP Morgan, SNB.