The IMF has now recommended that Switzerland should DEVALUE the franc by increasing its money supply. This is advice from the IMF run by a lawyer who clearly knows what she is doing because she worked in Chicago close the futures exchange at least. I suppose walking by the CME on your way to work qualifies you as a top currency adviser these days.
The DEFLATION is still unfolding for people are lacking CONFIDENCE in the future. As long as they remain uncertain about the future, they will continue to HOARD their cash and that causes the velocity of money to decline further fueling the DEFLATION. The IMF sees the problem with the capital flows still moving from the Euro into the dollar and franc while Euro based assets shift within Europe to Germany.
The strong franc will no doubt cause the Swiss economy to turn negative as well as the rest of the world turns down even harder. When the US economy declines, the Swiss will see a sharp decline and this appears to be a 26 year high in Swiss real estate as capital inflows slow.