Raphael Auer (@raphauer.bsky.social)

The 2015 CHF appreciation is a key empirical setting for understanding how large exchange rate movements shape macroeconomic outcomes. In a new @voxeu.org column w @leinsarah.bsky.social and Ariel Burstein, we reflect on the main learnings 10 years after the shock cepr.org/voxeu/column... @cepr.org

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Ten years after the Swiss franc shock: Lessons on prices, expenditure switching, and inequality The 2015 Swiss franc appreciation provided researchers with a unique empirical setting for understanding how large exchange rate movements shape economic outcomes. This column discusses key findings about the response of firms and consumers. The relatively muted pass-through observed in Switzerland reveals that a stronger currency does not fully translate into proportionate reductions in consumer prices, either at short or medium horizons. Household heterogeneity is also a key theme – low-income households which are more price-sensitive can benefit disproportionately from cheaper foreign goods, while households near the border can further benefit by shopping abroad. https://cepr.org/voxeu/columns/ten-years-after-swiss-franc-shock-lessons-prices-expenditure-switching-and-inequality