Switzerland Declares Victory Over Inflation and Prepares for Deflation

While the rest of the world suffers from rising pasta prices and dreams of “Black Friday” every day, Switzerland has gone against the current. In a country where even the air seems expensive, officials have announced: inflation has been defeated, and now it’s time to think about… deflation. The Swiss franc has become so strong that even chocolate is a bit more affordable, and cuckoo clocks are a couple of francs cheaper.

Global economists are at a loss: should they celebrate this success, or worry that in the event of mass deflation the Swiss will enthusiastically start buying up dollars, euros, and—dare we say—rubles? While other countries treat inflation with interest rate massages, in Bern they’re seriously discussing how not to turn into a land of perpetual discounts.

The Swiss National Bank has even dared to lower its base rate. If things keep going this way, soon you’ll be able to get a mortgage at a negative interest rate—just so long as you take something off their hands. Economic paradoxes are becoming the new national treasure: now the Swiss not only make precise watches, but also know how to manage prices with precision.

The main question is whether the country will turn into an economic dystopia, where the main punishment is being forced to buy chocolate on sale. On the other hand, there’s hope that if deflation reaches tourist prices, hordes of thrifty travelers will once again flock to the Alps. Who knows—maybe this is the real Swiss secret to success?