An empirical model is presented linking inflation and unemployment rate to
the change in the level of labour force in Switzerland. The involved variables
are found to be cointegrated and we estimate lagged linear deterministic
relationships using the method of cumulative curves, a simplified version of
the 1D Boundary Elements Method. The model yields very accurate predictions of
the inflation rate on a three year horizon. The results are coherent with the
models estimated previously for the US, Japan, France and other developed
countries and provide additional validation of our quantitative framework based
solely on labour force. Finally, given the importance of inflation forecasts
for the Swiss monetary policy, we present a prediction extended into 2050 based
on official projections of the labour force level.Comment: 21 pages, 12 figure
