PRIV Behavourial Patterns in the Swiss Economy and the Swiss Franc

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Let’s assume two economies with two different types of peoples:

People1 is risk-averse. This means that they have a higher rather constant savings rate. The savings rate than people2. They are similarly afraid of risks today and in the future. People1 is rather afraid to lose the job than missing joyful moments. As for investments, people1 hates volatility, but likes a steady income with lower returns.

The best attributes for people2 is joyful, they rather like to enjoy life, but avoid philosophical thoughts. Moreover, people2 follow trends and is not afraid by high volatility. This people see swings in the savings rate. In difficult economic moments, suddenly the whole people saves more. Then, relatively quickly spending recovers. The moment of fear quickly disappears.Companies hire again and the people2 spends.

Thanks to higher savings rate

 

 

 

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