• Europe the biggest risk to the global economy, without doubt
• Capacity for fiscal measures much lower than in 2008
• US employment near 10% very worrying; concern could become structural
• Can’t assume emerging currencies are shielded
• Saw massive flight to CHF before EUR peg put in place
• Swiss economy to weaken in second half of 2011 on strong franc
• Franc has shown very strong appreciation
• SNB will defend ceiling with all determination
• Risks of not acting on exchange rate were higher than acting
• Backs IMF Lagarde’s stance that banks need to be recapitalized
• If Europe does well, Switzerland does well
• Refuses comment on operational details on efforts to defend peg, amount of FX bought
• “Sometimes you have to be prepared to take a risk”