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'The Swiss Franc is the new deutschemark'
The Swiss Franc is the new deutschemark and without the resurrection of the old deutschemark it will remain one of the most desirable currencies in Europe. The Swiss National Bank does not appreciate this admiration, despite its own economy's contribution to global savings glut. The SNB's decision to peg the Swiss franc/euro exchange rate backed by unlimited creation of its domestic currency is "courageous" in the truest Whitehall sense. It subordinates monetary policy to foreign exchange policy and repeats the 1978 peg in a more sophisticated manner. The immediate success of the policy in boosting the euro by 8pc has ... (full story)