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Monetary policy: Fundamentals

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Monetary policy: Fundamentals

From theory to practice: Today’s monetary policy explained and illustrated with the example of the SNB.

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Updated on 01.12.2025

Latest change:

01.12.2025

Revision of advanced text (optimised structure) and worksheets (expanded and divided into basic and advanced knowledge).

Entire change history

2–4 lessons
German, French, Italian
KV
FVB
GYM
Easy to use

Overview

The advanced text explains in detail the basic mechanism of today’s monetary policy, the underlying decision-making process and current unconventional monetary policy.

  • Students work through them using two worksheets for different levels (basic knowledge and advanced knowledge).

Learning objectives

The students are able to …

  • identify the objectives of conventional monetary policy and name its main instrument;
  • explain the fundamental interdependencies of interest rates, inflation and economic development;
  • describe the monetary policy decision-making process and explain the individual phases;
  • understand the challenges of today’s unconventional monetary policy and situate them in the current economic context.

Advanced text

Monetary policy: Fundamentals
Text in the style of a textbook chapter on the basic mechanism of today’s monetary policy, the underlying decision-making process and current unconventional monetary policy.
Author: Pascal Meichtry, Banque de France

Worksheet

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Worksheet ‘Basic knowledge’

Exercises on the fundamentals
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Worksheet ‘Advanced knowledge’

Exercises for further studies
Create your own version Download

Sample answers Worksheet ‘Basic knowledge’

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Sample answers Worksheet ‘Advanced knowledge’

 Download

Extras

Source texts on the monetary policy of the SNB
For those wishing to delve further into the subject, eight source texts on the SNB’s monetary policy are introduced briefly and put into context.

Additional information

Links

The world of the National Bank

The world of the National Bank, an SNB publication, provides information on the SNB’s monetary policy in an easily understandable way.

our.snb.ch

The National Bank

The National Bank, an SNB publication, outlines the most important aspects of monetary policy, the impact of monetary policy on the economic situation and the practical implementation.

www.snb.ch

Videos
Conventional monetary policy
Unconventional monetary policy
Money creation

Credits – Monetary policy: Fundamentals

Concept:
Iconomix

Author of advanced text:
Pascal Meichtry, Banque de France

Didactic advice and co-author worksheets:
Philipp Spengler, lecturer for economics at the FHNW

Graphics:
clearbrand gmbh, Zurich

Translation & proofreading:
SNB Language Services

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