The Economics Student Who Became SNB Chairman
Martin Schlegel, Chairman of the Governing Board of the Swiss National Bank (SNB), spoke recently at the ninth ECONnect event.
Martin Schlegel, once an economics student at the University of Zurich (UZH), returned to the university’s main auditorium two decades later as Chairman of the Governing Board of the Swiss National Bank (SNB). The alumnus spoke at the ninth ECONnect event about the role of the central bank, the current state of the Swiss economy and its outlook, and how monetary policy decisions are made.
Schlegel, who has served as Chairman of the SNB’s Governing Board since 2024, began by outlining the Swiss central bank’s core responsibilities and objectives. Its remit includes impartiality in political and business matters, ensuring price stability, and acting in the overall national interest. “By maintaining this independence, we fulfil our mandate in the best interests of the country as a whole – and, therefore, in all of our interests,” he emphasized repeatedly.
The SNB’s decisions have a fundamental impact on the entire country. Every public announcement therefore carries great significance, including the SNB’s annual results, which reflect its financial position and provide indications of its monetary policy stance as well as economic developments.
Current economic situation in Switzerland and its outlook
Schlegel then turned to the current state of the Swiss economy, which mirrors international developments: rising trade tariffs, growing uncertainty among businesses, and weaker demand are defining the overall picture. Despite these headwinds, the Swiss economy remains generally robust.
Particularly striking, however, are the sharply diverging trends across sectors. “The gap is widening,” said Schlegel. While the services sector remains stable, the situation in industry looks more challenging – with the exception of pharmaceuticals and chemicals. Growth in the ndustry has been weak to negative over the past three years. With this sector in mind, Schlegel added: “I have the greatest respect for companies operating in international markets.”
Overall, SNB analysts expect to see moderate but solid growth in the Swiss economy and a continued decline in inflation. How do these economists reach such conclusions? The SNB Chairman went on to explain this in his presentation.
Data and people taking the pulse of the economy
What indicators and information are used to calculate findings and make monetary policy decisions? Schlegel provided his audience with a behind-the-scenes look at the SNB’s analytical work.
Historical indicators, such as the inflation rate and GDP growth, are supplemented with additional sources, such as conversations with business leaders. “In today’s environment, it is especially crucial to have these conversations. They are a very important source of information and enable us to take the pulse of the economy.” New types of data supported by machine learning and large language models, such as the new NEOS indicator (News-based Economic Outlook for Switzerland), which measures economic sentiment in Switzerland in real time, have also found their way into the SNB’s broad portfolio.
Data analysis and critical scrutiny are carried out by around 70 economists who assist the Governing Board in its decision-making, with the Chairman bearing responsibility for the decisions taken.
Human capabilities are key
Even back then, as a teaching assistant in Ernst Fehr’s microeconomics course – Fehr being a professor of economics at the time – Schlegel demonstrated skills that would prove crucial for his current role. In his introduction, Fehr recalled a student who had combined wide-ranging expertise and analytical precision with key soft skills, including a clear communication style, independence, and a sense of responsibility. “All of these qualities are essential for leading a central bank,” Fehr noted. “Reliability and guidance are not just about institutions, rules, or numbers; they are crucially about people who take responsibility, excel in their field, and are able to communicate complex issues clearly,” he added.
During the Q&A session, Ralph Ossa, UBS Professor of Economics, asked the SNB Chairman what fundamental qualities economics students should bring to the job market. He said employers are looking for people who can think analytically, express themselves clearly, and are curious, open to learning, and committed to continuous personal development. “And perhaps the next Chairman of the SNB is sitting right here in this room?” Schlegel asked, addressing the large number of students present. When he himself had once sat in the UZH auditorium as a student, he said, he had never im-agined this career path, from student to Chairman of the SNB.