Low inflation and stability over more than a century have been keys to Switzerland’s economic success, says new report co-authored by Elroy Dimson of Cambridge Judge Business School.
Switzerland’s long-term stability and low inflation rate – the world’s lowest over a 117-year study period – have been key factors in the country’s economic success, according to a new report co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management at Cambridge Judge.
Switzerland: a financial market history was published by the Credit Suisse Research Institute, based on the dataset of the Credit Suisse Global Investment Returns Yearbook.
The report compares Switzerland’s economic performance over the period 1900 through 2016, covering stocks, bonds and Treasury bills in addition to inflation rates and currencies. While Switzerland has only 0.1 per cent of the world’s population, it accounts for nearly three per cent of global equity value.
Switzerland’s 117-year inflation rate of 2.2 per cent per annum compared to the next lowest rate of 2.9 per cent per annum in the US and the Netherlands, which translated into a 12-fold increase in prices in Switzerland compared to 27 or 28 times for Dutch and American consumers.
The report published by Credit Suisse was produced in conjunction with Professor Elroy Dimson of Cambridge Judge Business School, and Professor Paul Marsh and Dr Mike Staunton both of London Business School.