01-16-2015, 12:21 PM
I don't get European central banks. If the past 10 years have shown us nothing, it is that the market needs central banks to signal intentions over a very broad timeline. You can't just change shit the day after you tell everyone you aren't changing shit. I just don't understand what the benefit to the Swiss was to change their peg overnight with no notice. Wouldn't it have been a far better move to simply raise the peg a little higher in response to the incoming Euro inflation, instead of removing the peg altogether overnight? Isn't it a central banks entire purpose of existence to keep the markets stable during periods of turmoil, and not to create their own?