We show that over the 20th century, the ratio of private wealth to national income, bpt⁠, in Switzerland did not follow a U-shaped pattern, thereby contrasting the evolution in most European countries. Instead, the ratio was exceptionally stable at around 500%. We argue that this consistently high bptwas the result of geopolitical factors combined with Switzerland’s capital-friendly policymaking. Since the turn of the century, however, bpthas been on a rapid rise to reach 793% in 2020. This exceptionally fast increase is mainly driven by large capital gains, especially in housing wealth.

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© 2023 The President and Fellows of Harvard College and the Massachusetts Institute of Technology
2025
The President and Fellows of Harvard College and the Massachusetts Institute of Technology

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