Martin Geiger

New article: link.springer.com/article/10… Andreas Brunhart and @MartinCGeiger investigate the adjustment dynamics of aggregate and sectoral goods exports following the Swiss Franc exchange rate shock in January 2015. Using granular customs data, the authors construct a counterfactual of the evolution of Swiss goods exports under the premise that the minimum exchange rate policy would have been continued. They find that while Swiss total nominal exports decrease in Swiss Francs, they increase in Euros. In real quantities, total exports remain largely unaffected, indicating a high degree of resilience of the Swiss export industry. Furthermore, a sector-level analysis reveals heterogeneous adjustments, with varying degrees of supply-side adjustment flexibility across sectors. For example, the chemicals/pharmaceuticals sector was able to significantly reduce prices in domestic currency shortly after the shock had set in, thereby counteracting the increase in foreign currency and stabilizing real export quantities. #ExchangeRate #ExportSector #SwissEconomy @KaufmannDani @Marius_Brulhart @AlineButikofer @Ste_Buehler