(Solution) - Suppose the Swiss National Bank SNB wished to have inflation -(2025 Original AI-Free Solution)

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Suppose the Swiss National Bank (SNB) wished to have inflation grow at a 2% rate during the coming year. Swiss nominal GDP is expected to grow during the period from SFr 8,000 million to SFr 8,080 million. The M2 velocity is expected to grow from 4.00 to 4.24. Calculate the percentage change in the money supply needed for the SNB to accomplish its goal. Given your answer, list the tools that the Swiss National Bank could use to change the money supply and how they would have to change.