Recall our discussion of the Swiss franc’s currency floor in the box on pp. 513–514. Also, recall the last chapter’s discussion of the liquidity trap. Because Switzerland has been in a liquidity trap...

Recall our discussion of the Swiss franc’s currency floor in the box on pp. 513–514. Also, recall the last chapter’s discussion of the liquidity trap. Because Switzerland has been in a liquidity trap all the time it has defended its currency floor, does our discussion of liquidity trap theory in the last chapter suggest why Swiss inflation has not been raised by the SNB’s heavy foreign exchange purchases?