Thomas Jordan Reflects on His Tenure at the Swiss National Bank

Thomas Jordan, the outgoing Chairman of the Swiss National Bank (SNB), shared his thoughts on the role and perception of central banking in a recent interview with the Bieler Tagblatt as he prepares to step down at the end of September. Over his 12-year tenure, Jordan has navigated the SNB through various crises, focusing strongly on price stability.

Defending His Legacy:

Jordan, often criticized for his rigid adherence to price stability and perceived inflexibility, defended his approach, emphasizing the importance of central bankers staying focused on their mandates rather than seeking attention through other means. He addressed the common misconception that central banking is dull, suggesting that being considered “boring” might be a hallmark of success.

“It’s better to be called boring or stubborn than for people to say I’m pursuing the wrong monetary policy,” Jordan remarked, underlining his commitment to the SNB’s mandate of maintaining price stability, defined as 0-2% inflation.

Handling Crises and Criticism:

Jordan’s tenure saw the SNB grappling with deflation threats and inflationary pressures, particularly after the COVID-19 pandemic. He highlighted the central bank’s efforts to prevent deflation and manage inflation, pointing out that Swiss inflation rates have remained relatively steady compared to other countries. This achievement, he suggested, is a testament to the SNB’s effective monetary policies.

Despite criticism, especially regarding handling Credit Suisse’s troubles and the broader banking sector’s stability, Jordan stands by the SNB’s actions. He noted that the central bank’s primary duty is to focus on macroeconomic stability rather than intervening in individual corporate issues.

Looking Ahead:

As he approaches the end of his term, Jordan, 61, expressed uncertainty about his next career move but ruled out a political role. His legacy at the SNB is marked by a steadfast commitment to price stability and a cautious, considered approach to monetary policy—a strategy he believes has served Switzerland well during turbulent times.

Jordan’s reflections provide insight into central banks’ often understated but critical role in maintaining economic stability, even if it sometimes means being labeled as “boring.”